Volatilité des chocs et degré de flexibilité du taux de change

Jean-Pierre Allegret (), Mohamed Ayadi () and Leila Haouaoui ()

Panoeconomicus, 2007, vol. 54, issue 3, 271-301

Abstract: During the 90s emerging markets have been hit by recurrent exchange rate crises. Almost all these countries shared a common characteristic: they adopted in previous years soft pegs, the so-called intermediate exchange rate regimes. International institutions and academic economists interpreted this intrinsic fragility of soft pegs as a consequence of the increasing international capital mobility. From this perspective, the exchange-rate regime is seen as constrained by the monetary policy trilemma, which imposes a stark trade-off among exchange stability, monetary independence, and capital market openness. Soft pegs seem incompatible with international financial integration. As a result, a new consensus appeared: the choice of domestic authorities is limited to corner solutions: hard pegs on the one side; independent floating on the other side. This paper proposes a contribution to the analysis of exchange rate regimes choice by emerging markets. The new consensus is questioned by considering that emerging countries are confronted not in the choice between extreme solutions, but rather with the choice of the degree of fixity- or the degree of flexibility- of the exchange rate. Key words: Emerging markets, Intermediate exchange rate regimes, Corner solutions, Macroeconomic shocks, Optimal flexibility of exchange rate.JEL: F33, F41.

Keywords: Optimal flexibility of exchange rate; Corner solutions; Intermediate exchange rate regimes; Emerging markets; Macroeconomic shocks (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://panoeconomicus.org/index.php/jorunal/article/view/284/269 (application/pdf)

Related works:
Working Paper: Volatilité des chocs et degré de flexibilité du taux de change (2007)
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:voj:journl:v:54:y:2007:i:3:p:271-301:id:284

Access Statistics for this article

Panoeconomicus is currently edited by Kosta Josifidis

More articles in Panoeconomicus from Savez ekonomista Vojvodine, Novi Sad, Serbia
Bibliographic data for series maintained by Savez ekonomista Vojvodine, Novi Sad, Serbia ().