Determinants of exchange-rate regimes for currencies of developing countries: Some preliminary results

Dreyer, Jaco S.

doi:10.1016/0305-750x(78)90093-1

Cited by 48 publications

(37 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…First there is the literature on the choice of exchange rate regime (starting with Heller 1978). Using data from tables in the International Monetary Fund's Exchange 2 and Trade Restrictions volumes, these studies categorize currencies as fixed or floating and Some authors, such as Dreyer (1978) and Melvin (1985), consider more than two categories 3 of exchange arrangements, distinguishing between freely floating currencies and those exhibiting limited flexibility, for example.…”

Section: Introductionmentioning

confidence: 99%

Exchange rate volatility and intervention: implications of the theory of optimum currency areas

Bayoumi,

Eichengreen

1998

Journal of International Economics

137

View full text Add to dashboard Cite

We show that variables pointed to by the theory of optimum currency areas (OCAs) help to explain patterns of exchange rate variability and intervention across countries. But OCA considerations affect exchange market pressures and intervention in different ways. Exchange market pressures mainly reflect asymmetric shocks, while intervention largely reflects the variables that OCA theory suggests cause countries to value stable exchange rates (small size and the extent of trade links). Intervention and exchange market pressure also vary with the structure of the international monetary system.

show abstract

Section: Introductionmentioning

confidence: 99%

Exchange rate volatility and intervention: implications of the theory of optimum currency areas

Bayoumi,

Eichengreen

1998

Journal of International Economics

137

View full text Add to dashboard Cite

show abstract

“…Following these, the size and nature of economic shocks (Fischer, 1977) and the automatic-stabiliser property of exchange rates and structure of the economy became more evident (Dreyer, 1978, Flood, 1979and Turnovsky, 1983. The analysis was based on the fact that countries experiencing large foreign price shocks should 6 rather opt for flexible exchange rates.…”

Section: Optimum Choice Of Exchange Rate Regimementioning

confidence: 99%

Choice of Exchange Rate Regime in a Selection of African Countries

Jordaan

2015

Journal of African Business

View full text Add to dashboard Cite

An exchange rate regime has an important impact on macroeconomic policies within developing countries and therefore essential in macroeconomic policy formation. The main research question is to determine how the variety of determinants would influence the exchange rate regime choice for a selection of 19 African developing countries. A distinction is made between three groups of variables, namely economic fundamentals, economic stabilisation aspects and currency crises factors, all affecting a country's exchange regime choice. The probability of these determinants is then estimated to establish whether the selected countries would choose a fixed, an intermediate or a flexible exchange regime.

show abstract

“…Thus, the early works (Heller, 1978;Dreyer, 1978) used as explanatory variables those related to optimum currency areas. Subsequent works incorporated also characteristics of shocks (Savvides, 1993;Melvin, 1985;Collins, 1996).…”

Section: Introductionmentioning

confidence: 99%

The determinants of the choice of exchange rate regimes in Latin America: a mixed multinomial logit approach

Ondina

Rivero

Queijeiro

et al. 2011

Cuadernos de Economía

View full text Add to dashboard Cite

The choice of the exchange rate regime is one of the most signifi cant monetary policy decisions that any economic authority has to make nowadays. Indeed, there have been many studies from a theoretical and empirical point of view, but the only common conclusion would be the lack of consensus. In the past this topic has been modeled by binary probit or cross-sectional multinomial logit models, both of which have weaknesses in the assumptions of the choices. In this paper, such issue is faced by means of a panel mixed multinomial logit model, which allows for substitution pattern among the three types of exchange rate regimes: fi xed, intermediate, and fl exible. Three types of choice determinants are explored: those stated by the Optimum Currency Area (OCA) theory, types of shocks and vulnerability to currency crises, using a sample of 21 Latin American countries over the period 1980-2004. © 2011 Asociación Cuadernos de Economía. Published by Elsevier España, S.L. All rights reserved. Determinantes de la elección del régimen cambiario en América Latina: una aproximación a un modelo logit multinomial mixtoResumen La elección del régimen cambiario constituye una de las decisiones de política económica más relevantes a las que se enfrentan las autoridades monetarias de cualquier país. Existe una amplia literatura, tanto teórica como empírica, cuyo principal resultado es la falta de consenso acerca de los determinantes de la elección del régimen cambiario. Tradicionalmente, este problema se había tratado mediante modelos probit binarios o modelos logit multinomiales de corte transversal, presentando ambos debilidades en la estimación. En este artículo, esta cuestión se afronta mediante un modelo logit multinomial con datos de panel que permite la 56 P. Álvarez Ondina et al.Crisis Cambiarias; Logit multinomial mixto correlación de los errores en el tiempo, así como una mayor fl exibilidad en la elección de las alternativas. Se analizan tres tipos de determinantes en la elección de régimen cambiario: aquellos que se derivan de la teoría de las Áreas Monetarias Óptimas, los relativos a los tipos de shocks y los que se refi eren a la propensión a las crisis cambiarias, utilizando una muestra de 21 países de América Latina para el periodo 1980-2004.

show abstract

Determinants of exchange-rate regimes for currencies of developing countries: Some preliminary results

Cited by 48 publications

References 3 publications

Exchange rate volatility and intervention: implications of the theory of optimum currency areas

Exchange rate volatility and intervention: implications of the theory of optimum currency areas

Choice of Exchange Rate Regime in a Selection of African Countries

The determinants of the choice of exchange rate regimes in Latin America: a mixed multinomial logit approach

Contact Info

Product

Resources

About