De Facto exchange rate arrangement tightness and bilateral trade flows
Peter Egger ()
Economics Letters, 2008, vol. 99, issue 2, 228-232
This paper estimates the effect of switching into and out of 14 different modes of exchange rate arrangements on bilateral exports between 1948 and 2001 in the world economy. Increasing the exchange rate arrangement tightness by one degree in the classification of Reinhart and Rogoff [Reinhart, Carmen M. and Kenneth S. Rogoff (2004), The Modern History of Exchange Rate Arrangements: A Reinterpretation, Quarterly Journal of Economics 119, 1-48.] increases bilateral trade flows by about 2-4% as compared to their initial level.
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:99:y:2008:i:2:p:228-232
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