The empirical distinction between de facto and de jure exchange rate regimes raises a number of interesting questions. Which factors may induce a de facto peg? Why do countries enforce a peg but do not announce it? Why do countries "break their promises"? We show that a stable socio-political environment and an efficient political decision-making process are a necessary prerequisite for choosing a peg and sticking to it, challenging the view that sees the exchange rate as a commitment device. Policymakers seem rather concerned with regime sustainability in the face of adverse economic and socio-political fundamentals. © 2008 Elsevier Ltd. All rights reserved.

Carmignani, F., Colombo, E., Tirelli, P., Exploring different views of exchange rate regime choice, <<JOURNAL OF INTERNATIONAL MONEY AND FINANCE>>, 2008; 27 (7): 1177-1197. [doi:10.1016/j.jimonfin.2008.06.004] [http://hdl.handle.net/10807/100226]

Exploring different views of exchange rate regime choice

Colombo, Emilio
;
Tirelli, Patrizio
Ultimo
2008

Abstract

The empirical distinction between de facto and de jure exchange rate regimes raises a number of interesting questions. Which factors may induce a de facto peg? Why do countries enforce a peg but do not announce it? Why do countries "break their promises"? We show that a stable socio-political environment and an efficient political decision-making process are a necessary prerequisite for choosing a peg and sticking to it, challenging the view that sees the exchange rate as a commitment device. Policymakers seem rather concerned with regime sustainability in the face of adverse economic and socio-political fundamentals. © 2008 Elsevier Ltd. All rights reserved.
2008
Inglese
Carmignani, F., Colombo, E., Tirelli, P., Exploring different views of exchange rate regime choice, <<JOURNAL OF INTERNATIONAL MONEY AND FINANCE>>, 2008; 27 (7): 1177-1197. [doi:10.1016/j.jimonfin.2008.06.004] [http://hdl.handle.net/10807/100226]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/100226
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