Measuring exchange rate flexibility by regression methods
A new and easily implemented regression method is proposed for generating an index of exchange rate flexibility, whilst simultaneously identifying anchors of pegged currencies. The method can distinguish floats from pegs, including those with occasional devaluations. An annual index is calculated th...
| Main Authors: | , |
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| Format: | Article |
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Oxford University Press
2017
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| Online Access: | https://eprints.nottingham.ac.uk/34558/ |
| _version_ | 1848794882022309888 |
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| author | Bleaney, Michael Tian, Mo |
| author_facet | Bleaney, Michael Tian, Mo |
| author_sort | Bleaney, Michael |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | A new and easily implemented regression method is proposed for generating an index of exchange rate flexibility, whilst simultaneously identifying anchors of pegged currencies. The method can distinguish floats from pegs, including those with occasional devaluations. An annual index is calculated that can be compared with other regime classification schemes, or used directly in empirical research as a measure of exchange rate flexibility. Different categories in the IMF’s de facto classification, and also in the Reinhart-Rogoff classification, are associated with significantly different average values of the index. Further analysis of managed floats shows that they have a strong tendency to track the US dollar. |
| first_indexed | 2025-11-14T19:23:15Z |
| format | Article |
| id | nottingham-34558 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T19:23:15Z |
| publishDate | 2017 |
| publisher | Oxford University Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-345582020-05-04T18:22:46Z https://eprints.nottingham.ac.uk/34558/ Measuring exchange rate flexibility by regression methods Bleaney, Michael Tian, Mo A new and easily implemented regression method is proposed for generating an index of exchange rate flexibility, whilst simultaneously identifying anchors of pegged currencies. The method can distinguish floats from pegs, including those with occasional devaluations. An annual index is calculated that can be compared with other regime classification schemes, or used directly in empirical research as a measure of exchange rate flexibility. Different categories in the IMF’s de facto classification, and also in the Reinhart-Rogoff classification, are associated with significantly different average values of the index. Further analysis of managed floats shows that they have a strong tendency to track the US dollar. Oxford University Press 2017-01-01 Article PeerReviewed Bleaney, Michael and Tian, Mo (2017) Measuring exchange rate flexibility by regression methods. Oxford Economic Papers, 69 (1). pp. 301-319. ISSN 1464-3812 exchange rates currency pegs trade http://oep.oxfordjournals.org/content/early/2016/06/01/oep.gpw029 doi:10.1093/oep/gpw029 doi:10.1093/oep/gpw029 |
| spellingShingle | exchange rates currency pegs trade Bleaney, Michael Tian, Mo Measuring exchange rate flexibility by regression methods |
| title | Measuring exchange rate flexibility by regression methods |
| title_full | Measuring exchange rate flexibility by regression methods |
| title_fullStr | Measuring exchange rate flexibility by regression methods |
| title_full_unstemmed | Measuring exchange rate flexibility by regression methods |
| title_short | Measuring exchange rate flexibility by regression methods |
| title_sort | measuring exchange rate flexibility by regression methods |
| topic | exchange rates currency pegs trade |
| url | https://eprints.nottingham.ac.uk/34558/ https://eprints.nottingham.ac.uk/34558/ https://eprints.nottingham.ac.uk/34558/ |