Global trends in the choice of exchange rate regime

Bleaney, Michael; Tian, Mo; Yin, Lin

Abstract

The raw data suggest that the global trend towards greater exchange rate flexibility that was evident before 1990 has since stopped. An optimum currency area (OCA) model of exchange rate regime choice is estimated. Four different schemes for classifying exchange rate regime are investigated. Trends in the explanatory variables made little difference to the trend towards greater flexibility before 1990 but have worked against it since, largely because of the reduction in inflation. Underlying preferences are still shifting gradually in the direction of greater flexibility.

Citation

Bleaney, M., Tian, M., & Yin, L. (2016). Global trends in the choice of exchange rate regime. Open Economies Review, 27(1), 71-85. https://doi.org/10.1007/s11079-015-9375-7

• Journal Article Type: Article
• Acceptance Date: Jul 27, 2015
• Online Publication Date: Aug 6, 2015
• Publication Date: Feb 1, 2016
• Deposit Date: Jun 20, 2018
• Publicly Available Date: Jun 20, 2018
• Journal: Open Economies Review
• Print ISSN: 0923-7992
• Electronic ISSN: 1573-708X
• Publisher: Springer Verlag
• Peer Reviewed: Peer Reviewed
• Volume: 27
• Issue: 1
• Pages: 71-85
• DOI: https://doi.org/10.1007/s11079-015-9375-7
• Keywords: Exchange rate regimes; Inflation; Openness
• Public URL: https://nottingham-repository.worktribe.com/output/978232
• Publisher URL: https://link.springer.com/article/10.1007/s11079-015-9375-7
• Additional Information: This is a post-peer-review, pre-copyedit version of an article published in Open Economies Review. The final authenticated version is available online at: http://dx.doi.org/10.1007/s11079-015-9375-7