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Exchange Rate Regime Durability and Performance in Developing Countries Versus Advanced Economies
TLDR
This paper found that for developing countries with little exposure to international capital markets, pegs are notable for their durability and relatively low inflation, while floats are distinctly more durable and also appear to be associated with higher growth.Abstract:
Drawing on new data and advances in exchange rate regimes' classification, we find that countries appear to benefit by having increasingly flexible exchange rate systems as they become richer and more financially developed. For developing countries with little exposure to international capital markets, pegs are notable for their durability and relatively low inflation. In contrast, for advanced economies, floats are distinctly more durable and also appear to be associated with higher growth. For emerging markets, our results parallel the Baxter and Stockman classic exchange regime neutrality result, though pegs are the least durable and expose countries to higher risk of crisis.read more
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To Float or to Fix: Evidence on the Impact of Exchange Rate Regimes on Growth
TL;DR: This paper studied the relationship between exchange rate regimes and economic growth for a sample of 183 countries over the post-Bretton Woods period, using a new de facto classification of regimes based on the actual behavior of the relevant macroeconomic variables.
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Financial Globalization; A Reappraisal
TL;DR: This paper provided a unified conceptual framework for organizing the literature on the benefits and costs of financial globalization for developing countries, but along many disparate channels and with a variety of apparently conflicting results.
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Foreign direct investment and economic growth in Vietnam
Sajid Anwar,Lan Phi Nguyen +1 more
TL;DR: In this article, the authors examined the link between foreign direct investment and economic growth in Vietnam by making use of a recently released panel dataset that covers 61 provinces of Vietnam from 1996 to 2005.
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The Impact of Foreign Interest Rates on the Economy: The Role of the Exchange Rate Regime
TL;DR: In this paper, the authors explored the connection between interest rates in major industrial countries and annual real output growth in other countries and found that high large country interest rates have a contractionary effect on annual real GDP growth in the domestic economy, but that this effect is centered on countries with fixed exchange rates.
Impact of Globalization on Monetary Policy
TL;DR: The authors argue that continuing asset price volatility is at least in part because of heightened asset price sensitivity to risk changes as risk levels fall, and the increasing ability of financial markets to diversify risk.
References
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The Twin Crises: The Causes of Banking and Balance-Of-Payments Problems
TL;DR: The authors analyzes the links between banking and currency crises and finds that problems in the banking sector typically precede a currency crisis, activating a vicious spiral; financial liberalization often precedes banking crises.
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The twin crises: the causes of banking and balance-of-payments problems
TL;DR: This paper examined the potential links between banking and balance-of-payments crises and found that financial liberalization usually predates banking crises, indeed, it helps predict them, rather than a causal relationship from banking to balance of payments crises.
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The Modern History of Exchange Rate Arrangements: A Reinterpretation
TL;DR: This article developed a novel system of re-classifying historical exchange rate regimes, which leads to a stark reassessment of the post-war history of exchange rate arrangements and suggests that exchange rate arraignments may be quite important for growth, trade and inflation.
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The Determinants of Banking Crises in Developing and Developed Countries
TL;DR: This article studied the factors associated with the emergence of systemic banking crises in a large sample of developed and developing countries in 1980-94 using a multivariate logit econometric model.
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Fear of Floating
TL;DR: This article analyzed the behavior of exchange rates, reserves, monetary aggregates, interest rates, and commodity prices across 154 exchange rate arrangements to assess whether official labels' provide an adequate representation of actual country practice.