https://mpra.ub.uni-muenchen.de/id/eprint/13736 2019-09-27T18:55:56Z info:eu-repo/semantics/descriptiveMetadata https://mpra.ub.uni-muenchen.de/13736/ The mirage of floating exchange rates Reinhart, Carmen G1 - General Financial Markets F31 - Foreign Exchange This note summarizes some of the highlights of my longer paper with Guillermo Calvo”Fear of Floating.” Many emerging market countries have suffered financial crises. One view blames soft pegs for these crises. Adherents to that view suggest that countries move to corner solutions--hard pegs or floating exchange rates. We analyze the behavior of exchange rates, reserves, and interest rates to assess whether there is evidence that country practice is moving toward corner solutions. We focus on whether countries that claim they are floating are indeed doing so. We find that countries that say they allow their exchange rate to float mostly do not--there seems to be an epidemic case of “fear of floating.” 2000-05 MPRA Paper NonPeerReviewed application/pdf en https://mpra.ub.uni-muenchen.de/13736/1/MPRA_paper_13736.pdf Reinhart, Carmen (2000): The mirage of floating exchange rates. Published in: American Economic Review , Vol. 90, No. 2 (May 2000): pp. 65-70. en info:eu-repo/semantics/objectFile info:eu-repo/semantics/humanStartPage