A Faith-based Initiative: Does a Flexible Exchange Rate Regime Really Facilitate Current Account Adjustment?
---- Acknowledgements ----
We thank Charles Engel, Graciela Kaminsky and Franc Klaassen for very helpful comments. Chinn acknowledges the financial support of faculty research funds of the University of Wisconsin, Madison. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.