Cite JOURNAL ARTICLE
A New Approach to Identifying Exchange Rate Regimes
Applied Economics Quarterly, Vol. 64 (2018), Iss. 2 : pp. 137–157
Fugger, Gerald, Chair of Statistics, University of Duisburg-Essen.
This publication identifies de facto exchange rate regimes. The study takes into account multiple specifications for the exchange rate regimes, both effective and non-effective. The regimes are classified by means of a three-dimensional clustering approach, that takes the exchange rate volatility, the volatility of exchange rate changes and the volatility of reserves into account. The regimes are classified as floating, dirty floating, crawling peg or fixed. The analysis comprises 90 countries and a span of 35 years.
JEL classifications: E42
Keywords: de facto exchange rate regimes, clustering techniques, effective exchange rates
Table of Contents
|Gerald Fugger: A New Approach to Identifying Exchange Rate Regimes||1|
|2. Comparison of De Jure and De Facto Classifications||2|
|3. Exchange Rates and Clustering Approaches||4|
|4. The De Facto Exchange Rate Regime Classification||5|
|5. The Clustering Procedure and the De Facto Classification||8|
|6. Conclusion and Possible Extensions||1|
|Table 1A: The De Facto Regimes (NER)||1|
|Table 1B: The De Facto Regimes (NEER)||1|