EconPapers    
Economics at your fingertips  
 

Could the Exchange Rate Regime Reduce Macroeconomic Volatility?

Jorge Carrera () and Diego Bastourre ()

No 309, Econometric Society 2004 Latin American Meetings from Econometric Society

Abstract: This study intends to determine the relationship existing between the exchange rate regime and real volatility. After revising the theoretical and empirical results of previous research, it is proposed a new methodology that corrects deficiencies of previous empirical papers. The results show non-neutrality of the exchange rate regime. Particularly, it is found that the more rigid the regime is the grater real volatility will be. Even when it is performed an exchange rate regime classification that allows a comparison between consistent pegging and consistent floating, the former has a higher volatility. Countries with “fear of floating†behavior exhibit lower volatility than consistent pegs

Keywords: real volatility; exchange rate regime; panel data (search for similar items in EconPapers)
JEL-codes: C23 F33 F41 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba and nep-ifn
Date: 2004-08-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://repec.org/esLATM04/up.12037.1082128715.pdf (application/pdf)

Related works:
Working Paper: COULD THE EXCHANGE RATE REGIME REDUCE MACROECONOMIC VOLATILITY? (2004) Downloads
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:ecm:latm04:309

Access Statistics for this paper

More papers in Econometric Society 2004 Latin American Meetings from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2019-05-01
Handle: RePEc:ecm:latm04:309