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dc.contributor.authorFrankel, Jeffrey A.
dc.contributor.authorXie, Daniel
dc.date.accessioned2010-09-29T21:12:46Z
dc.date.issued2010
dc.identifier.citationFrankel, Jeffrey A., and Daniel Xie. "Estimation of De Facto Flexibility Parameter and Basket Weights in Evolving Exchange Rate Regimes." American Economic Review 100.2 (May 2010): 568-572.en_US
dc.identifier.issn1610-2878
dc.identifier.issn0002-8282
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:4454158
dc.description.abstractA new technique for estimating countries’ de facto exchange rate regimes synthesizes two approaches. One approach estimates the implicit de facto basket weights in an OLS regression of the local currency value rate against major currency values. Here the hypothesis is a basket peg with little flexibility. The second estimates the de facto degree of exchange rate flexibility by observing how exchange market pressure is allowed to show up. Here the hypothesis is an anchor to the dollar or some other single major currency, but with a possibly substantial degree of exchange rate flexibility around that anchor. It is important to have available a technique that can cover both dimensions: inferring anchor weights and the flexibility parameter. We test the synthesis technique on a variety of fixers, floaters, and basket peggers. We find that real world data demand a statistical technique that allows parameters and regimes to shift frequently. Accordingly we here take the next step in estimation of de facto exchange rate regimes: endogenous estimation of parameter breakpoints, following Bai and Perron.en_US
dc.language.isoen_USen_US
dc.publisherAmerican Economic Associationen_US
dc.relation.isversionofhttp://dx.doi.org/10.1257/aer.100.2.568en_US
dash.licenseOAP
dc.subjectInternational Monetary Arrangements and Institutionsen_US
dc.subjectInternational Linkages to Developmenten_US
dc.subjectRole of International Organizationsen_US
dc.subjectTrade Policyen_US
dc.subjectFactor Movementen_US
dc.subjectForeign Exchange Policy
dc.titleEstimation of De Facto Flexibility Parameter and Basket Weights in Evolving Exchange Rate Regimesen_US
dc.typeJournal Articleen_US
dc.description.versionAccepted Manuscripten_US
dc.relation.journalAmerican Economic Reviewen_US
dash.depositing.authorFrankel, Jeffrey A.
dc.date.available2010-09-29T21:12:46Z
dash.affiliation.other
dc.identifier.doi10.1257/aer.100.2.568*
dash.contributor.affiliatedFrankel, Jeffrey


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