Evolution of Exchange Rate Regimes
38 Pages Posted: 15 Feb 2006
Date Written: December 9, 1988
This paper studies issues relating to the evolution of exchange rate regimes. Empirical regularities concerning the variation over time of real and monetary disturbances and cross-country inflation differentials are first discussed. The paper then develops a model that incorporates these regularities and thereby enables exchange rate regime changes to be viewed as optimal and predictable responses by policymakers to a changing economic environment.
JEL Classification: 4314, 4320
Suggested Citation: Suggested Citation