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Rethinking exchange rate regimes

Ilzetzki, Ethan, Reinhart, Carmen M. and Rogoff, Kenneth S. (2022) Rethinking exchange rate regimes. In: Gopinath, Gita, Helpman, Elhanan and Rogoff, Kenneth, (eds.) Handbook of International Economics: International Macroeconomics. Handbook of International Economics (6). Elsevier, 91 - 145. ISBN 9780323957724

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Identification Number: 10.1016/bs.hesint.2022.02.010


This paper employs an updated algorithm and database for classifying exchange rate and anchor currency choice, to explore the evolution of the global exchange rate system, including parallel rates, capital controls and reserves. In line with a large recent literature, we find that the US dollar has become ever-more central as the de facto anchor or reference currency for much of the world. The discussion encompasses the history of anchor currency choice, methods for classifying exchange rate regimes, a detailed discussion of the evolution of regimes, the growing substitution of reserves for capital controls as a tool for exchange rate stabilization, the modern Triffin dilemma, and the surprising recent trend decline in volatility of exchange rates at the core of the system. It concludes with issues surrounding the rise of China.

Item Type: Book Section
Official URL:
Additional Information: © 2022 Elsevier B.V.
Divisions: Economics
Subjects: H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
Date Deposited: 06 May 2022 14:15
Last Modified: 19 Oct 2022 10:15

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