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The Endogeneity of Exchange Rate Regimes

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  • Barry Eichengreen

Abstract

The international monetary system has passed through a succession of phases characterized alternatively by the dominance of fixed and flexible exchange rates. How are these repeated shifts between fixed and flexible rate regimes to be understood? The present paper specifies and tests six hypotheses with the capacity to explain the alternating phases of fixed and flexible exchange rates into which the last century can be partitioned. The evidence provides support for a number of the hypotheses considered. In this sense it confirms that monocausal explanations are unlikely to provide an adequate account of the endogeneity of exchange rate regimes.

Suggested Citation

  • Barry Eichengreen, 1993. "The Endogeneity of Exchange Rate Regimes," NBER Working Papers 4361, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4361
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    2. Rodriguez, Cesar M., 2016. "Economic and political determinants of exchange rate regimes: The case of Latin America," International Economics, Elsevier, vol. 147(C), pages 1-26.
    3. Kool, C. J. M. & Koedijk, K. G., 1997. "Real exchange rates between the wars," Journal of International Money and Finance, Elsevier, vol. 16(2), pages 211-232, April.

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    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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