[PDF] Impact of Exchange Rate Regimes on Economic Growth

Does exchange rate policy affect economic growth?

Third, impact of the choice of ERR on economic growth for countries with different income levels. The relationship we found before still appears, even though more significant for countries with lower income levels than those with higher income levels. This highlighted the importance of exchange rate policy for developing countries.

How do errs affect economic growth?

24 5.3 Regressions for Different Country Groups The choice of ERR is not only influenced by country size, but also related to the income level of countries. Poor countries may depend on ERRs more than rich countries, which could lead to more significant impact of ERRs on economic growth.

When did the exchange rate market become more flexible?

And the exchange rate reform starting in July 2005 boosted the flexibility in the exchange rate market for a short while. This explains the seeming ly abnormal

Are fixed exchange rates a good investment?

As fixed exchange rates may in some cases report substantial gains in terms of credibility and inflation performance, particularly in a high inflation context. Additionally, the costs of the transition from floating to a fixed are nonnegligible .