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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Understanding exchange rate policy announcements: A political economy approach
Organization Unit
Authors
  • Alexander Wagner
Item Subtype Original Work
Refereed No
Status Published in final form
Language
  • English
Journal Title Journal of public and international affairs
Publisher Graduate School of Public and International Affairs, University of Pittsburgh
Geographical Reach international
ISSN 0195-6000
Volume 14
Number 1
Page Range 184 - 205
Date 2003
Abstract Text The stability of the international financial system depends on the consistency of announcements, beliefs, and actions by countries and international organizations like the IMF. This article considers the first element in this trinity and analyzes the incentives of a rational policy maker to announce a fixed or flexible exchange rate regime. In a cross-sectional analysis for the 1990s, I find that countries with a non-functioning legal system, a low degree of the rule of law, high expropriation risk, low infrastructure quality and similar characteristics are more ikely to announce fixed exchange rates. This result is consistent with a theoretical argument about announcing a fixed regime as a signal of “goodness” to the international community.
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Official URL https://www.uzh.ch/dam/bf/persons/employee-assets/wagner_alexander/papers/Wagner_ExchangeRatePolicyAnnouncements_2003.pdf
Other Identification Number merlin-id:9303
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