Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5060163 | Economics Letters | 2012 | 5 Pages |
Abstract
This paper argues that fixed exchange rate regimes are preferred by the international sector only if they are adopted in economies endowed with anti-inflationary policy-making institutions (i.e., independent central banks). Cross-national firm-level data gives strong support to this claim.
⺠Internationally-oriented firms' exchange rate preferences vary across countries. ⺠Fixed regimes are preferable only if the level of the exchange rate is competitive. ⺠These firms' preference for pegs is greater when central banks are independent.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
José Fernández-Albertos,