This paper analyzes the evolution of fear of floating (FOF) and its effect on output in Chile, Colombia and Mexico. It …

This paper addresses the question of whether fear of floating in developing countries can be justified as optimal …

In recent years the term “fear of floating” has been used to describe exchange rate regimes that, while officially …

inflation bias due to credibility problems. The net welfare impact of fear of floating depends on the economy’s recent track … record, the credibility of monetary policy, and the central bank’s discount factor. It is shown that fear of floating is more …

“Fear of Floating? are found in all samples, but such cases tend to be less frequently found in the post-crisis period than …

The paper presents evidence on exchange rate pass-through and the Fear of Floating hypothesis before and after … different methodologies to examine the existence of Fear of Floating practices. We observe a drastic reduction in direct foreign … attainment of the inflation targets, Fear of Floating seems to play only a minor role for most economies in our sample. …

variability of the exchange rates. According to some economists, this is a clear symptom of the fear of floating and Brazil can … other macroeconomic variables, this paper concludes that Brazil has not suffered from the fear of floating and that the …