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Author Qureshi, Mahvash Saeed, author

Title The Empirics of exchange rate regimes and trade : words vs. deeds / prepared by Mahvash Saeed Qureshi and Charalambos Tsangarides
Published [Washington, DC] : International Monetary Fund, [2010]
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Description 1 online resource (45 pages) : illustrations
Series IMF working paper ; 10/48
IMF working paper ; WP/10/48
Contents Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Empirical Strategy; A. Analytical Framework; B. Estimation Issues; III. Description of Data; A. Exchange Rate Regime Classification; 1. Similarity index across different exchange rate regime classifications; 1. Agreement of different exchange rate regimes; 2. Distribution based on IMF's classification of exchange rate regimes; 2. Distribution of exchange rate regimes across country groups; B. Data and Summary Statistics; 3. Distribution of regimes in the dyadic sample
4. Distribution of dyads across exchange rate arrangementsIV. Empirical Results; A. Benchmark specification; 5. Benchmark specification results for the world sample; 6. Results for indirect pegs based on anchor currencies; 7. Benchmark specification results for the subsamples; B. Words versus deeds; 8. Results for deeds versus words for the world and subsamples; 9. Results for long-run policy credibility for the world and subsamples; C. Dynamic effects; 10. Results for dynamic specification for the world sample; D. Sensitivity Analysis; V. Conclusion and Policy Implications; Appendix A
A1. Variable description and data sourcesA2. Summary statistics of selected variables; A3. List of countries in the sample; A4. List of anchor countries and currencies; A1. Direct and indirect peg relations across countries; Appendix B; B1. Benchmark specification results with short-run volatility for the world; B2. Benchmark specification results with short-run volatility for subsamples; B3. Benchmark specification results with different levels of indirect pegs; B4. Augmented specification with quadratic volatility; C5. Results for sensitivity analysis
C6. Trade stability for the world and subsamplesReferences; Footnotes
Summary This paper examines the impact of exchange rate regimes on bilateral trade while differentiating the effects of "words" and "deeds". Our findings-based on an extended database for de jure and de facto exchange rate classifications-show that while fixed exchange rate regimes increase trade, there is no systematic difference in the effects of policy announcements versus actions to maintain exchange rate stability. The trade generating effect of more stable exchange rate regimes is however more pronounced when words and actions are aligned, both in the short and long-run. Policy credibility therefore plays an important role in determining the effects of de jure and de facto exchange rate arrangements such that deviations between the two could be costly. In addition, we find evidence that (i) the impact of hard pegs such as currency unions is broadly similar to that of conventional pegs; (ii) the currency union and direct peg effects evolve over time; and (iii) the effects of more stable regimes are heterogeneous across country groups
Notes "February 2010."
At head of title: Research Department
Bibliography Includes bibliographical references (pages 24-26)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. MiAaHDL
digitized 2011 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Foreign exchange rates.
Form Electronic book
Author Tsangarides, Charalambos G., author
International Monetary Fund. Research Department, issuing body
ISBN 1283563819
145199933X (E-Book)