TY  - JOUR
AU  - Ghosh,Atish R.
AU  - Gulde,Anne-Marie
AU  - Ostry,Jonathan D.
AU  - Wolf,Holger C.
TI  - Does the Nominal Exchange Rate Regime Matter?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5874
PY  - 1997
Y2  - January 1997
UR  - http://www.nber.org/papers/w5874
L1  - http://www.nber.org/papers/w5874.pdf
N1  - Author contact info:
Atish R. Ghosh
Research Department
International Monetary Fund
HQ1-09-612
700 19th Street, N.W.
Washington DC, 20431
E-Mail: aghosh@imf.org

Jonathan D. Ostry
Research Department
International Monetary Fund
HQ1-10-700
700 19th Street, N.W.
Washington DC, 20431
E-Mail: jostry@imf.org

Holger C. Wolf
Center for German and European Studies
ICC-503
School of Foreign Service
Georgetown University
Washington, DC  20057
Tel: 202/687-8079
Fax: 202/687-8359
E-Mail: moneyhist@aol.com
AB  - The relevance of the exchange rate regime for macroeconomic performance remains a key issue in international macroeconomics. We use a comprehensive dataset covering nine regime-types for one hundred forty countries over thirty years to examine the link between the regime, inflation, and growth.  Two sturdy stylized facts emerge.  First, inflation is both lower and more stable under pegged regimes, reflecting both slower money supply and faster money demand growth.  Second, real volatility is higher under pegged regimes.  In contrast, growth varies only slightly across regimes, though investment is somewhat higher and trade growth somewhat lower under pegged regimes.  Pegged regimes are thus characterized by lower inflation but more pronounced output volatility.
ER  -