TY  - JOUR
AU  - Husain,Aasim M.
AU  - Mody,Ashoka
AU  - Rogoff,Kenneth S.
TI  - Exchange Rate Regime Durability and Performance in Developing Countries Versus Advanced Economies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10673
PY  - 2004
Y2  - August 2004
UR  - http://www.nber.org/papers/w10673
L1  - http://www.nber.org/papers/w10673.pdf
N1  - Author contact info:
Ashoka Mody
European Department
International Monetary Fund
700 19th Street, NW
Washington DC 20431
E-Mail: amody@imf.org

Kenneth S. Rogoff
Thomas D Cabot Professor of Public Policy
Economics Department
Harvard University
Littauer Center 216
Cambridge, MA 02138-3001
Tel: 617-495-4022
Fax: 617/495-7730
E-Mail: krogoff@harvard.edu
AB  - Drawing on new data and advances in exchange rate regimes' classification, we find that countries appear to benefit by having increasingly flexible exchange rate systems as they become richer and more financially developed.  For developing countries with little exposure to international capital markets, pegs are notable for their durability and relatively low inflation.  In contrast, for advanced economies, floats are distinctly more durable and also appear to be associated with higher growth. For emerging markets, our results parallel the Baxter and Stockman classic exchange regime neutrality result, though pegs are the least durable and expose countries to higher risk of crisis.
ER  -