The Importance of the Exchange Rate Regime in Limiting Misalignment |
| |
Authors: | Justin M Dubas |
| |
Institution: | aTexas Lutheran University, Seguin, TX, USA |
| |
Abstract: | This paper explores how the choice of a country’s exchange rate regime may affect exchange rate misalignment for developing and developed countries. A measure of misalignment is obtained by using a panel cointegration vector estimator. This paper finds that for developing countries, an intermediate exchange rate regime (a regime falling somewhere between a pure float and a hard peg) is most effective in preventing exchange rate misalignment. Additionally, the choice of an exchange rate regime as a means to limit misalignment matters for developing countries, but does not seem to matter for developed countries. |
| |
Keywords: | equilibrium exchange rates exchange rate regime misalignment developing countries |
本文献已被 ScienceDirect 等数据库收录! |
|