Is the exchange rate regime really irrelevant for external adjustment?

We argue that evidence on whether floating exchange rates facilitate external adjustment is contradictory because existing regime classifications do not adequately capture exchange rate flexibility relevant to external adjustment. Using a trade-weighted bilateral exchange rate volatility measure, we show that exchange rate flexibility indeed matters for current account dynamics.

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Year of publication:	2013
Authors:	Ghosh, Atish R. ; Qureshi, Mahvash S. ; Tsangarides, Charalambos G.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 118.2013, 1, p. 104-109
Publisher:	Elsevier
Subject:	Current account dynamics \| Exchange rate regime \| Bilateral exchange rate volatility

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Type of publication:	Article
Classification:	F32 - Current Account Adjustment; Short-Term Capital Movements ; F41 - Open Economy Macroeconomics
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010603130