De facto exchange rate regime classifications: an evaluation

Bleaney, Michael; Tian, Mo; Yin, Lin

Abstract

There exist several statistically-based exchange rate regime classifications that disagree with one another to a disappointing degree. To what extent is this a matter of the quality of the design of these schemes, and to what extent does it reflect the need to supplement statistics with other information (as is done in the IMF’s de facto classification)? It is shown that statistical methods are good at the basics (distinguishing some type of peg from some type of float), but less helpful in other respects, such as determining whether a float is managed, particularly for countries that are not very remote from their main trading partners. Different measures of exchange rate volatility have been used but are not primarily responsible for differences between classifications. The theoretical underpinning of particular classification schemes needs to be more explicit.

Citation

Bleaney, M., Tian, M., & Yin, L. (2017). De facto exchange rate regime classifications: an evaluation. Open Economies Review, 28(2), 369-382. https://doi.org/10.1007/s11079-016-9427-7

• Journal Article Type: Article
• Acceptance Date: Oct 13, 2016
• Online Publication Date: Dec 7, 2016
• Publication Date: Apr 1, 2017
• Deposit Date: Jan 11, 2017
• Publicly Available Date: Jan 11, 2017
• Journal: Open Economies Review
• Print ISSN: 0923-7992
• Electronic ISSN: 1573-708X
• Publisher: Springer Verlag
• Peer Reviewed: Peer Reviewed
• Volume: 28
• Issue: 2
• Pages: 369-382
• DOI: https://doi.org/10.1007/s11079-016-9427-7
• Keywords: Exchange rate regimes; Trade; Volatility
• Public URL: https://nottingham-repository.worktribe.com/output/969851
• Publisher URL: http://link.springer.com/article/10.1007%2Fs11079-016-9427-7
• Additional Information: The final publication is available at Springer via http://dx.doi.org/10.1007/s11079-016-9427-7.
• Contract Date: Jan 11, 2017