HOW RELIABLE ARE DE FACTO EXCHANGE RATE REGIME CLASSIFICATIONS?1. (10th April 2012)

• Record Type: Journal Article
• Authors: Eichengreen, Barry; Razo‐Garcia, Raul
• Is Part Of: International journal of finance & economics. Volume 18:Number 3(2013:Jul.)
• Page Start: 216
• Page End: 239
• Publication Date: 2012-04-10
• Subjects: International finance -- Periodicals; Economics -- Periodicals; 332
• DOI: 10.1002/ijfe.1456
• Languages: English
• ISSNs: 1076-9307

Abstract

<abstract abstract-type="main"> <title>ABSTRACT</title> <p>We analyze disagreements over <italic>de facto</italic> exchange‐rate‐regime classifications using three popular <italic>de facto</italic> regime data series. While there is a moderate degree of concurrence across classifications, disagreements are not uncommon, and they are not random. They are most prevalent in middle‐income countries (emerging markets) and low‐income (developing) countries as opposed to advanced economies. They are most prevalent for countries with well‐developed financial markets, low reserves and open capital accounts. This suggests caution when attempting to relate the exchange rate regime to financial development, the openness of the financial account, and reserve management and accumulation decisions. Copyright © 2012 John Wiley &amp; Sons, Ltd.</p> </abstract>