After the Deluge: Do Fixed Exchange Rates Allow Inter-Temporal Volatility Tradeoffs?

Andrew K. Rose

NBER Working Paper No. 5219
Issued in August 1995
NBER Program(s):International Finance and Macroeconomics Program

This paper addresses the issue of whether regimes of fixed exchange rates are a mechanism for shifting volatility inter- temporally. Using a panel of data covering twenty industrialized countries from 1959 through 1993, I examine the volatilities of a host of real and monetary variables. Graphical and statistical examination of the periods around 33 flotations and 81 devaluations reveals little evidence of significant increases in volatility following these events.

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Document Object Identifier (DOI): 10.3386/w5219

Published: International Journal of Finance and Economics, 1995 citation courtesy of

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