Choosing (and reneging on) exchange rate regimes

Journal of the European Economic Association

Volumn 4, Issue 4, 2006, Pages 770-799

  Alesina, Alberto ^a   Wagner, Alexander F ^b  

^a HARVARD UNIVERSITY   (United States)

^b UNIVERSITY OF ZURICH   (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34948899700     PISSN: 15424766     EISSN: 15424774     Source Type: Journal    
DOI: 10.1162/JEEA.2006.4.4.770     Document Type: Article

References (49)

1. Aghion, Philippe, Philippe Bacchetta, and Abhijit Banerjee (2004). "A Corporate Balance Sheet Approach to Currency Crises." Journal of Economic Theory, 119, 6-30.
2. Alesina, Alberto, and Robert J. Barro (2002). "Currency Unions." Quarterly Journal of Economics, 117, 409-436.
3. Alesina, Alberto, Robert J. Barro, and Silvana Tenreyro (2002). "Optimal Currency Areas." NBER Macroeconomics Annual, 301-355.
4. Alesina, Alberto, and Alexander Wagner (2003). "Choosing (and Reneging on) Exchange Rate Regimes." NBER Working Paper No. 9809.
5. Backus, David, and John Driffill (1985a). "Inflation and Reputation." American Economic Review, 75, 530-528.
6. Backus, David, and John Driffill (1985b). "Rational Expectations and Policy Credibility Following a Change of Regime." Review of Economic Studies, 52, 211-221.
7. Barro, Robert J. (1996). "Democracy and Growth." Journal of Economic Growth, 1, 1-29.
8. Barro, Robert J., and David B. Gordon (1983). "Rules, Discretion, and Reputation in a Model of Monetary Policy." Journal of Monetary Economics, 12, 101-121.
9. Bartolini, Leonardo, and Allan Drazen (1997). "Capital Account Liberalization as a Signal." American Economic Review, 87, 138-154.
10. Bernanke, Ben, and Mark Gerder (1989). "Agency Costs, Net Worth, and Business Fluctuations." American Economic Review, 79, 402-423.
11. Bertola, Giuseppe, and Allan Drazen (1993). "Trigger Points and Budget Cuts: Explaining the Effects of Fiscal Austerity." American Economic Review, 83, 11-26.
12. Bubula, Andrea, and Inci Ötker-Robe (2002). "The Evolution of Exchange Rate Regimes Since 1990: Evidence from De Facto Policies." IMF Working Paper No. 02/155.
13. Calvo, Guillermo A. (1999). "On Dollarization." Available at www.bsos.umd.edu/econ/ciecalvo.htm, under Policy Notes.
14. Calvo, Guillmero, and Pablo E. Guidotti (1993). "On the Flexibility of Monetary Policy: The Case of the Optimal Inflation Tax." Review of Economic Studies, 60, 667-687.
15. Calvo, Guillermo, and Carmen Reinhart (2000). "Fixing for your Life." NBER Working Paper No. 8006.
16. Calvo, Guillermo, and Carmen Reinhart (2002). "Fear of Floating." Quarterly Journal of Economics, 117, 379-408.
17. Cespedes, Luis Felipe, Roberto Chang, and Andres Velasco (2002). "Balance Sheets and Exchange Rate Policies." American Economic Review, 94, 1183-1193.
18. Drazen, Allan (2000). Political Economy in Macroeconomics. Princeton University Press.
19. Drazen, Allen, and Paul R. Masson (1994). "Credibility of Policies versus Credibility of Policymakers." Quarterly Journal of Economics, 109, 734-754.
20. Eichengreen, Barry, and Ricardo Hausmann (2003). "Original Sin: The Road to Redemption." In Other People's Money, edited by Barry Eichengreen and Ricardo Hausmann. University of Chicago.
21. Fleming, J. Marcus (1962). "Domestic Financial Policies Under Fixed and Floating Exchange Rates." IMF Staff Papers, 9, 369-379.
22. Frieden, Jeffry, Piero Ghezzi, and Ernesto Stein (2000). "Politics and Exchange Rates: A Cross-Country Approach to Latin America." Inter-American Development Bank Research Network Working Paper No. R-421.
23. Gale, David, and Xavier Vives (2002). "Dollarization, Bailouts, and the Stability of the Banking System." Quarterly Journal of Economics, 177, 467-503.
24. Ghosh, Atish, Anne-Marie Gulde, Jonathan Ostry, and Holger Wolf (1997). "Does the Nominal Exchange Rate Regime Matter?" NBER Working Paper No. 5874.
25. Giavazzi, F., and A. Giovannini (1989). Limited Exchange Rate Flexibility. MIT Press.
26. Hausmann, Ricardo, Ugo Panizza, and Ernesto Stein (2001). "Why Do Countries Float the Way They Float?" Journal of Development Economics, 66, 387-414.
27. Hausmann, Ricardo, Ugo Panizza, and Ernesto Stein (2002). "Why Do Countries Float the Way They Float?" Working Paper, Inter-American Development Bank.
28. IMF (1999). Exchange Rate Arrangements and Currency Convertibility: Developments and Issues. IMF, Washington, DC.
29. Kaufmann, Daniel, Aart Kraay, and Pablo Zoido-Lobatón (1999a). "Aggregating Governance Indicators." World Bank Policy Research Department Working Paper No. 2195.
30. Kaufmann, Daniel, Aart Kraay, and Pablo Zoido-Lobatón (1999b). "Governance Matters." World Bank Policy Working Paper No. 2196.
31. Kaufmann, Daniel, Aart Kraay, and Pablo Zoido-Lobatón (2002). "Governance Matters II: Updated Indicators for 2000/01." World Bank Policy Research Department Working Paper No. 2772.
32. Krugman, Paul (1999). "Balance Sheets, the Transfer Problem and Financial Crises." In International Finance and Financial Crises, edited by Peter Isard, Assaf Razin, and Andrew K. Rose. Kluwer Academic Publishers.
33. Lahiri, Amartya, and Carlos A. Vegh (2001). "Living with the Fear of Floating: An Optimal Policy Perspective." In Preventing Currency Crises in Emerging Markets, edited by Sebastian Edwards and Jeffrey Frankel. University of Chicago Press.
34. Levy-Yeyati, Eduardo (2003). "On the Impact of a Common Currency on Bilateral Trade." Economics Letters, 79, 125-129.
35. Levy-Yeyati, Eduardo, and Federico Sturzenegger (2003). "A de facto Classification of Exchange Rate Regimes: A Methodological Note." American Economic Review, 93, 1173-1193.
36. Levy-Yeyati, Eduardo, Federico Sturzenegger, and Iliana Reggio (2003). "On the Endogeneity of Exchange Rate Regimes." Working Paper, Universidad Torcuato Di Tella and UCLA.
37. Mulligan, Casey, Ricard Gil, and Xavier Sala-i-Martin (2004). "Do Democracies Have Different Public Policies than Nondemocracies?" Journal of Economic Perspectives, 18, 51-74.
38. Mundell, Robert A. (1961). "A Theory of Optimum Currency Areas." American Economic Review, 51, 657-664.
39. Mundell, Robert A. (1963). "Capital Mobility and Stabilization Policy under Fixed and Flexible Exchange Rates." Canadian Journal of Economics and Political Science, 20, 475-485.
40. Neut, Alejandro, and Andres Velasco (2003). "Tough Policies, Incredible Policies?" Harvard University CID Working Paper No. 105.
41. Obstfeld, Maurice, and Ken Rogoff (1996). Foundations of International Macroeconomics. MIT Press.
42. Obstfeld, Maurice, and A. Taylor (2002). "Globalization and Capital Markets." NBER Working Paper No. 8846.
43. Persson, Torsten (2001). "Do Political Institutions Shape Economic Policy?" Econometrica, 70, 883-905.
44. Persson, Torsten, and Guido Tabellini (2000). Political Economics: Explaining Economic Policy. The MIT Press, Cambridge, MA.
45. Reinhart, Carmen M., and Kenneth S. Rogoff (2003). "The Modern History of Exchange Rate Arrangements: A Reinterpretation." Quarterly Journal of Economics, 119, 1-48.
46. Reinhart, Carmen, Ken Rogoff, and Marco Savastano (2003). "Debt Intolerance." Brookings Papers on Economic Activity, 2003(1), 1-74.
47. Rose, Andrew (2000). "One Money One Market: Estimating the Effects of Currency Unions on Trade." Economic Policy, 15, 7-46.
48. Shambaugh, Jay (2003). "The Effect of Fixed Exchange Rates on Monetary Policy." Quarterly Journal of Economics, 119, 301-352.
49. Wagner, Alexander F. (2004). "Understanding Exchange Rate Policy Announcements: A Political Economy Approach." Journal of Public and International Affairs, 14, 184-205.