Better two eyes than one: A synthesis classification of exchange rate regimes - Archive ouverte HAL
Pré-Publication, Document De Travail (Working Paper) Année : 2024

Better two eyes than one: A synthesis classification of exchange rate regimes

Cécile Couharde

Résumé

This paper proposes a new de facto classification of exchange rate regimes, the synthesis classification. This framework offers several advantages over existing de facto classifications. First, it provides a unified framework that integrates the most divergent classifications, the RR and LYS classifications, not only achieving broader coverage but also encompassing a wide spectrum of exchange regimes. Second, it fits better with the historical developments of exchange rate regimes in the post-Bretton Woods era. Among others, it brings a nuanced perspective on the so-called hollowing-out hypothesis by showing that the evolution of de facto regimes —especially in emerging economies since the late 1990s— has essentially involved a shift toward more tightly “managed” intermediate regimes, rather than a move away from them. As an illustration of the insightfulness of our classification, we empirically revisit the relationship between currency crises and exchange rate regimes. Our classification not only associates a higher probability of currency crisis with both intermediate and floating regimes, but also shows better statistical performances in predicting currency crises compared to other classifications.
Fichier principal
Vignette du fichier
wp2021-07.pdf (2.02 Mo) Télécharger le fichier
Origine Fichiers produits par l'(les) auteur(s)

Dates et versions

hal-04752826 , version 1 (25-10-2024)

Identifiants

  • HAL Id : hal-04752826 , version 1

Citer

Cécile Couharde, Carl Grekou. Better two eyes than one: A synthesis classification of exchange rate regimes. 2021. ⟨hal-04752826⟩
19 Consultations
4 Téléchargements

Partager

More