scholarly journals Dynamic Analysis of Exchange Rate Regimes: Policy Implications for Emerging Countries in Asia

2014 ◽  
Author(s):  
Naoyuki Yoshino ◽  
Sahoko Kaji ◽  
Tamon Asonuma
Keyword(s):  
Exchange Rate ◽  
Dynamic Analysis ◽  
Exchange Rate Regimes ◽  
Emerging Countries ◽  
Policy Implications

scholarly journals What Drives Stops in Cross-Border Bond Flows?

2019 ◽  
Vol 11 (14) ◽  
pp. 3763
Author(s):  
Seung-Gwan Baek ◽  
Chi-Young Song
Keyword(s):  
Exchange Rate ◽  
Financial Markets ◽  
Emerging Economies ◽  
Exchange Rate Regimes ◽  
Real Exchange Rates ◽  
Flexible Exchange Rate ◽  
Regression Method ◽  
Policy Implications ◽  
Capital Account ◽  
Cross Border

This paper empirically explores the determinants of stop episodes driven by bond flows using quarterly data from 38 economies over the period 1995–2011. Drastic bond-led stop episodes may greatly destabilize domestic financial markets and lead to financial crisis, threatening the sustainability of the financial system. Using the complementary log–log regression method, we found that bond-led stop episodes were associated with contagion and domestic factors rather than global factors. The results of our estimation showed that the probability of bond-led stop episodes was higher in countries with larger financial markets or with more overvalued real exchange rates. The main policy implications of our results, particularly for emerging economies, are that bond-led stop episodes were less likely to occur in countries with higher levels of institutional quality, lower capital account restrictions, or more flexible exchange-rate regimes. Finally, we found that capital control played a relatively greater role in predicting bond-led stops in emerging economies than did exchange-rate regimes.

scholarly journals Which currency exchange regime for emerging markets?: Corner solutions under question

2007 ◽  
Vol 54 (4) ◽  
pp. 397-427 ◽  
Author(s):  
Jean-Pierre Allegret
Keyword(s):  
Exchange Rate ◽  
Emerging Markets ◽  
Inflation Targeting ◽  
International Institutions ◽  
Exchange Rate Regime ◽  
Exchange Rate Regimes ◽  
Emerging Countries ◽  
Currency Exchange ◽  
Corner Solutions ◽  
Exchange Regime

During the 90s, recurrent exchange rate crises in emerging markets have shown the extreme fragility of soft pegs, the so-called intermediate exchange rate regimes. As a result, numerous academic economists but also International institutions have promoted a new consensus: domestic authorities have to choose their exchange rate regime between only two solutions called corner solutions or extreme regimes: hard pegs or independent floating. This paper questions de relevance of this consensus. We stress the main advantages and costs of each corner solution. We conclude by stressing that intermediate regimes associated to an inflation targeting framework seem a better solution for emerging countries than corner solutions.

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