Fixed versus Flexible Exchange Rates: Evidence from Developing Countries
Mathias Hoffmann ()
No 109, Royal Economic Society Annual Conference 2003 from Royal Economic Society
This paper empirically investigates Mundell's (1961) formalisation that in a small open economy flexible exchange rates act as a `shock absorber'. The role of a world real interest rate shock in driving output, trade imbalances and real exchange rate fluctuations under different exchange rate regimes is empirically investigated in a Panel VAR, which utilises economic theory for identification.
Keywords: small open economies; exchange rate regimes; panel VAR (search for similar items in EconPapers)
JEL-codes: C33 F31 F41 (search for similar items in EconPapers)
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Journal Article: Fixed versus Flexible Exchange Rates: Evidence from Developing Countries (2007)
Working Paper: Fixed versus flexible exchange rates: Evidence from developing countries (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ecj:ac2003:109
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