Exchange rate regimes and external financial stability
Financial stability within the framework of the global financial crisis has become a common topic for researchers and practitioners. In order to analyse the impact of exchange rate regimes on financial stability we use both the de jure and de facto exchange rate classifications. We apply th...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics, Belgrade
2016-01-01
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| Series: | Ekonomski Anali |
| Subjects: | |
| Online Access: | http://www.doiserbia.nb.rs/img/doi/0013-3264/2016/0013-32641609027S.pdf |
| Summary: | Financial stability within the framework of the global financial crisis has
become a common topic for researchers and practitioners. In order to analyse
the impact of exchange rate regimes on financial stability we use both the de
jure and de facto exchange rate classifications. We apply the model to a
1999-2010 annual data sample for 135 countries and territories, grouped by
the level of economic development. Our second focus is the investigation of
the effects of the exchange rate regimes in three economic integration areas
(member countries of the European Union 27, the Southern Common Market, and
the Association of Southeast Asian Nations) on financial stability. Our
results generally support the central banks’ concerns that the flexibility of
exchange rate regimes should be reduced in order to sustain financial
stability; however, the findings are not robust when using alternative regime
classifications. |
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| ISSN: | 0013-3264 1820-7375 |