The performance of exchange rate regimes in developing countries: Does the classifications scheme matter?

Arbeitspapier

Official and four alternative regime classification schemes based on observed exchange rate behaviour are used to examine the relationship with inflation and growth in developing countries. For an identical sample of observations from 73 countries for 1984-2001, only the scheme based on parallel rates suggests a significant effect (negative) of floating on growth. Floats that claim to be pegs, or have high exchange rate volatility, are the ones with lower growth. Hard pegs offer inflation benefits. Floating is not consistently associated with higher inflation than soft pegs, and any apparent association is a possible by-product of the design of the classification algorithms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CREDIT Research Paper ; No. 07/04

Classification and Topics

• Classification: Wirtschaft ; Price Level; Inflation; Deflation ; Open Economy Macroeconomics ; Economic Growth and Aggregate Productivity: General
• Subject: exchange rate regimes ; growth ; inflation ; Wechselkurssystem ; Klassifikation ; Entwicklungsländer

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bleaney, Michael ; Francisco, Manuela
• Event: Veröffentlichung
• (who): The University of Nottingham, Centre for Research in Economic Development and International Trade (CREDIT)
• (where): Nottingham
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/80324
• Last update: 10.03.2025, 11:42 AM CET