A Faith-Based Initiative Meets the Evidence
Does a Flexible Exchange Rate Regime Really Facilitate Current Account Adjustment
Bibliographic Data
| ID | 19318366 |
|---|---|
| Authors | Meilin Chinn (0000-0002-1821-183X), Menzie D Chinn, Shang‐jin Wei (Columbia University), Shang-Jin Wei |
| Year | 2013 |
| Volume | 95 |
| Issue | 1 |
| Pages | 168-184 |
| Publication date | 2013-03-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | The Review of Economics and Statistics (JOURNAL) |
| Journal identifiers | ISSN: 0034-6535 • E-ISSN: 1530-9142 |
| Publisher | MIT Press - Journals (PUBLISHER) |
| DOI | 10.1162/rest_a_00244 |
| OpenAlex | W2061708934 |
| Language | EN |
| Citations received | 13 |
| References cited | 14 |
It is often asserted that a flexible exchange rate regime would facilitate current account adjustment. Using data on over 170 countries over the 1971–2005 period, we examine this assertion systematically. We find no strong, robust, or monotonic relationship between exchange rate regime flexibility and the rate of current account reversion, even after accounting for the degree of economic development and trade and capital account openness. This finding presents a challenge to the Friedman (1953) hypothesis and a popular policy recommendation by international financial institutions
Assertion · Capital account · Current (fluid) · Current account · Econometrics · Economics · Exchange rate · Exchange-rate flexibility · Exchange-rate regime · Faith · Flexibility (engineering) · Macroeconomics · Monetary economics · Openness to experience · Computer Science · Global Financial Crisis and Policies · Islamic Finance and Banking Studies · Taxation and Compliance Studies
Global Monetary Cooperation and the Exchange Rate System
The Provision of Global Liquidity
A Brief History of the International Monetary System since Bretton Woods
Resolution of Balance-of-Payments Crises
Capital Account Liberalization and Management
The Governance of the International Monetary System
Reforming the (Non)System
Exchange rate regimes and current account persistence
US trade deficit, a reality check
Current account dynamics, real exchange rate adjustment, and the exchange rate regime in emerging-market economies
Régimes de change et soutenabilité des finances publiques dans les pays en développement
Friedman Redux
The Origins of Persistent Current Account Imbalances in the Post-Bretton Woods Era
An Equilibrium Model of “Global Imbalances” and Low Interest Rates
The Modern History of Exchange Rate Arrangements
Do Panels Help Solve the Purchasing Power Parity Puzzle
What matters for financial development? Capital controls, institutions, and interactions
Purchasing power parity and country characteristics
The Competitive Saving Motive
| Unique citing works | 13 |
|---|---|
| Citations per year | 1,18 |
| Citation span | 2015 - 2023 (9) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 13 |