2003/08/01 by Eduardo Levy-Yeyati, Eduardo Levy Levy-Yeyati, Federico Sturzenegger · 8 citations
Economics, Econometrics and Finance · #Global Financial Crisis and Policies #Fiscal Policy and Economic Growth #Economic Policies and Impacts
paper · doi:10.1257/000282803769206250
We study the relationship between exchange rate regimes and economic growth for a sample of 183 countries over the post-Bretton Woods period, using a new de facto classification of regimes based on the actual behavior of the relevant macroeconomic variables. In contrast with previous studies, we find that, for developing countries, less flexible exchange rate regimes are associated with slower growth, as well as with greater output volatility. For industrial countries, regimes do not appear to have any significant impact on growth. The results are robust to endogeneity corrections and a number of alternative specifications borrowed from the growth literature.