Exchange-rate regimes and inflation: An empirical evaluation

Based on a dataset of 123 economies, both developed and developing countries, this paper investigates the relation between exchange-rate regimes and inflation performance. Our results suggest that those countries with flexible exchange-rate regimes are characterized by higher inflation rates, while...

Descripción completa

Detalles Bibliográficos
Autores: Sosvilla Rivero, Simón Javier, Ramos Herrera, María del Carmen
Tipo de recurso: informe técnico
Fecha de publicación:2014
País:España
Institución:Universidad Complutense de Madrid (UCM)
Repositorio:Docta Complutense
Idioma:inglés
OAI Identifier:oai:docta.ucm.es:20.500.14352/41633
Acceso en línea:https://hdl.handle.net/20.500.14352/41633
Access Level:acceso abierto
Palabra clave:E42
31
Exchange rate regimes
Inflation rates
Econometría (Economía)
Economía internacional
Indicadores económicos
Microeconomía
5302 Econometría
5310 Economía Internacional
5302.01 Indicadores Económicos
5307.15 Teoría Microeconómica
Descripción
Sumario:Based on a dataset of 123 economies, both developed and developing countries, this paper investigates the relation between exchange-rate regimes and inflation performance. Our results suggest that those countries with flexible exchange-rate regimes are characterized by higher inflation rates, while the smaller inflation rates are associated with fixed exchange rates and countries with intermediate regimes occupy an intermediate position in their records of inflation rates. These results are maintained when we analyze the countries by income level, except for the case of upper income countries, where we do not find significant differences between fixed and intermediate regimes in inflation performance.