Does the Nominal Exchange Rate Regime Matter

摘要: The relevance of the exchange rate regime for macroeconomic performance remains a key issue in international macroeconomics. We use comprehensive dataset covering nine regime-types one hundred forty countries over thirty years to examine link between regime, inflation, and growth. Two sturdy stylized facts emerge. First, inflation is both lower more stable under pegged regimes, reflecting slower money supply faster demand Second, real volatility higher regimes. In contrast, growth varies only slightly across though investment somewhat trade Pegged regimes are thus characterized by but pronounced output volatility.