Skip to content
University of Maryland LibrariesDigital Repository at the University of Maryland
    • Login
    View Item 
    •   DRUM
    • College of Behavioral & Social Sciences
    • Economics
    • Economics Research Works
    • View Item
    •   DRUM
    • College of Behavioral & Social Sciences
    • Economics
    • Economics Research Works
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Fear of Floating

    Thumbnail
    View/Open
    ciecrp11.pdf (210.7Kb)
    No. of downloads: 3329

    Date
    2000-09-25
    Author
    Calvo, Guillermo A.
    Reinhart, Carmen M.
    Metadata
    Show full item record
    Abstract
    In recent years, many countries have suffered severe financial crises, producing a staggering toll on their economies, particularly in emerging markets. One view blames fixed exchange rates-- “soft pegs”--for these meltdowns. Adherents to that view advise countries to allow their currency to float. We analyze the behavior of exchange rates, reserves, the monetary aggregates, interest rates, and commodity prices across 154 exchange rate arrangements to assess whether “official labels” provide an adequate representation of actual country practice. We find that, countries that say they allow their exchange rate to float mostly do not--there seems to be an epidemic case of “fear of floating.” Since countries that are classified as having a free or a managed float mostly resemble noncredible pegs--the so-called “demise of fixed exchange rates” is a myth--the fear of floating is pervasive, even among some of the developed countries. We present an analytical framework that helps to understand why there is fear of floating.
    URI
    http://hdl.handle.net/1903/4294
    Collections
    • Economics Research Works

    DRUM is brought to you by the University of Maryland Libraries
    University of Maryland, College Park, MD 20742-7011 (301)314-1328.
    Please send us your comments.
    Web Accessibility
     

     

    Browse

    All of DRUMCommunities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    LoginRegister
    Pages
    About DRUMAbout Download Statistics

    DRUM is brought to you by the University of Maryland Libraries
    University of Maryland, College Park, MD 20742-7011 (301)314-1328.
    Please send us your comments.
    Web Accessibility