Exchange rate regime classifications and exchange rate variability

Yu You, Yoonbai Kim, Lei Hou

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

It is well known that the exchange rate regime (ERR) declared to the IMF is often different from the actual regime. Several alternative schemes for de facto regime classification have been developed. In this article, we compare the ability of four popular schemes to track exchange rate variability (ERV). We find that the existing ERR classifications do not match well with the degree of ERV, especially for intermediate regimes. For instance, in the Levy-Yeyati and Sturzenegger (2003) coding, the intermediate regimes exhibit greater ERV than the floaters. On the other hand, for the Reinhart and Rogoff (2004) coding, the fixers show greater variability than some intermediates.

Original languageEnglish
Pages (from-to)336-340
Number of pages5
JournalApplied Economics Letters
Volume23
Issue number5
DOIs
StatePublished - Mar 23 2016

Bibliographical note

Publisher Copyright:
© 2015 Taylor & Francis.

Keywords

  • Exchange rate regimes
  • exchange rate variability

ASJC Scopus subject areas

  • Economics and Econometrics

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