Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/1737
Title: Duration of Fixed Exchange Rate Regimes in Emerging Economies
Authors: Tamgaç, Ünay
Keywords: Exchange rate regime
Survival analysis
Duration
Emerging economies
Issue Date: Oct-2013
Publisher: Elsevier Sci Ltd
Source: Tamgac, U. (2013). Duration of fixed exchange rate regimes in emerging economies. Journal of International Money and Finance, 37, 439-467.
Abstract: This paper examines the duration of fixed exchange rate regimes and investigates whether there is a certain pattern of time dependence in the survival rate of pegged exchange rate regimes for emerging economies. We query why some fixed regimes last longer and determine the macroeconomic, social and political factors that make a pegged regime more durable. We use survival analysis, a technique which accounts for the unobservable cumulative effects associated with maintaining a fixed exchange rate that build up over the duration of a regime. In our model, time enters as a proxy for these unobserved persistent effects as we investigate the relative importance of the fundamentals in the economy on regime durability by considering their relation together with the effect of time itself. Using the de facto exchange rate regime classification proposed by Reinhart and Rogoff (2004), we find non-monotonic duration dependence and show that time is a significant factor for the duration of pegged regimes. Openness, changes in foreign reserves, growth, real exchange rate misalignment, claims on government and sociopolitical instability are also found to influence the pegged regime duration.
URI: https://doi.org/10.1016/j.jimonfin.2013.06.015
https://hdl.handle.net/20.500.11851/1737
ISSN: 0261-5606
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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