EconPapers    
Economics at your fingertips  
 

Fixed Exchange Rate Regimes and Inflation Performance: Evidence from MENA Countries

Ghanem Darine
Additional contact information
Ghanem Darine: University Montpellier I /LaboratoireMontpelliérain d’Economie Théorique et Appliquée (LAMETA)

Review of Middle East Economics and Finance, 2012, vol. 8, issue 1, 1-30

Abstract: In this paper we study the empirical evidence on inflation performance of fixed but adjustable exchange rate regimes in MENA over the period of 1980-2007, using exchange rate regimes as declared (de jure) and as observed (de facto). We identify credible regimes by matching what is announced and what is observed. Our results suggest that, even when accounting for possible endogeneity, credible pegs were associated with lower inflation, while declared fixed exchange rates were not significantly associated with lower inflation. Moreover, there is substantial evidence that suggests that countries, who have often announced more exchange rate flexibility in order to avoid speculative attacks while maintaining a stable exchange rate, were successful in achieving low inflation.

Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1515/1475-3693.1354 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:rmeecf:v:8:y:2012:i:1:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/rmeef

DOI: 10.1515/1475-3693.1354

Access Statistics for this article

Review of Middle East Economics and Finance is currently edited by Ghassan Dibeh

More articles in Review of Middle East Economics and Finance from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2021-05-07
Handle: RePEc:bpj:rmeecf:v:8:y:2012:i:1:n:2