"Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"

Autores
Bermúdez, Cecilia; Dabús, Carlos Darío
Año de publicación
2012
Idioma
inglés
Tipo de recurso
documento de conferencia
Estado
versión publicada
Descripción
We estimate the de facto exchange rate regimes for the seven most important Latin American economies (LA-7) between 1998 and 2011. We use the methodology developed by Zeileis, Shah and Patnaik (2010) because, unlike others, it captures the ‘fine’ structure behind the regimes and identifies structural breaks at sharp dates. This method allows us to build a series of the ‘exchange rate flexibility’, which we use to address two concerns, regarding the evolution of the exchange rates in Latin America. Firstly, we show that AL-7 economies have moved towards more flexible exchange rate systems, thus overcoming their ‘fear of floating’. Secondly, we estimate a non-linear panel data model to examine the threshold effects of the degree of flexibility of the exchange rate on output volatility. We find a negative link between the degree of inflexibility and output volatility: the higher the inflexibility of the exchange rate regime the lower the output volatility. This unusual result may be attributed to a ‘diminishing returns’ dynamics that would make higher inflexibility less effective to deter output volatility.
Fil: Bermúdez, Cecilia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
Fil: Dabús, Carlos Darío. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
XLVII Reunión Annual de la Asociación Argentina de Economía Política
Trelew
Argentina
Asociación Argentina de Economia Política
Materia
Exchange rate regimes
Output Volatility
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/272730
Acceder
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spelling "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"Bermúdez, CeciliaDabús, Carlos DaríoExchange rate regimesOutput Volatilityhttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5We estimate the de facto exchange rate regimes for the seven most important Latin American economies (LA-7) between 1998 and 2011. We use the methodology developed by Zeileis, Shah and Patnaik (2010) because, unlike others, it captures the ‘fine’ structure behind the regimes and identifies structural breaks at sharp dates. This method allows us to build a series of the ‘exchange rate flexibility’, which we use to address two concerns, regarding the evolution of the exchange rates in Latin America. Firstly, we show that AL-7 economies have moved towards more flexible exchange rate systems, thus overcoming their ‘fear of floating’. Secondly, we estimate a non-linear panel data model to examine the threshold effects of the degree of flexibility of the exchange rate on output volatility. We find a negative link between the degree of inflexibility and output volatility: the higher the inflexibility of the exchange rate regime the lower the output volatility. This unusual result may be attributed to a ‘diminishing returns’ dynamics that would make higher inflexibility less effective to deter output volatility.Fil: Bermúdez, Cecilia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; ArgentinaFil: Dabús, Carlos Darío. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; ArgentinaXLVII Reunión Annual de la Asociación Argentina de Economía PolíticaTrelewArgentinaAsociación Argentina de Economia PolíticaAsociación Argentina de Economía Política2012info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/conferenceObjectCongresoBookhttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/272730"Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"; XLVII Reunión Annual de la Asociación Argentina de Economía Política; Trelew; Argentina; 2012; 1-22978-987-28590-0-81852-0022CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/site/que.htmlNacionalinfo:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-10-15T14:20:33Zoai:ri.conicet.gov.ar:11336/272730instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-10-15 14:20:33.433CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
title "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
spellingShingle "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
Bermúdez, Cecilia
Exchange rate regimes
Output Volatility
title_short "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
title_full "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
title_fullStr "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
title_full_unstemmed "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
title_sort "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"
dc.creator.none.fl_str_mv Bermúdez, Cecilia
Dabús, Carlos Darío
author Bermúdez, Cecilia
author_facet Bermúdez, Cecilia
Dabús, Carlos Darío
author_role author
author2 Dabús, Carlos Darío
author2_role author
dc.subject.none.fl_str_mv Exchange rate regimes
Output Volatility
topic Exchange rate regimes
Output Volatility
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv We estimate the de facto exchange rate regimes for the seven most important Latin American economies (LA-7) between 1998 and 2011. We use the methodology developed by Zeileis, Shah and Patnaik (2010) because, unlike others, it captures the ‘fine’ structure behind the regimes and identifies structural breaks at sharp dates. This method allows us to build a series of the ‘exchange rate flexibility’, which we use to address two concerns, regarding the evolution of the exchange rates in Latin America. Firstly, we show that AL-7 economies have moved towards more flexible exchange rate systems, thus overcoming their ‘fear of floating’. Secondly, we estimate a non-linear panel data model to examine the threshold effects of the degree of flexibility of the exchange rate on output volatility. We find a negative link between the degree of inflexibility and output volatility: the higher the inflexibility of the exchange rate regime the lower the output volatility. This unusual result may be attributed to a ‘diminishing returns’ dynamics that would make higher inflexibility less effective to deter output volatility.
Fil: Bermúdez, Cecilia. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
Fil: Dabús, Carlos Darío. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Bahía Blanca. Instituto de Investigaciones Económicas y Sociales del Sur. Universidad Nacional del Sur. Departamento de Economía. Instituto de Investigaciones Económicas y Sociales del Sur; Argentina
XLVII Reunión Annual de la Asociación Argentina de Economía Política
Trelew
Argentina
Asociación Argentina de Economia Política
description We estimate the de facto exchange rate regimes for the seven most important Latin American economies (LA-7) between 1998 and 2011. We use the methodology developed by Zeileis, Shah and Patnaik (2010) because, unlike others, it captures the ‘fine’ structure behind the regimes and identifies structural breaks at sharp dates. This method allows us to build a series of the ‘exchange rate flexibility’, which we use to address two concerns, regarding the evolution of the exchange rates in Latin America. Firstly, we show that AL-7 economies have moved towards more flexible exchange rate systems, thus overcoming their ‘fear of floating’. Secondly, we estimate a non-linear panel data model to examine the threshold effects of the degree of flexibility of the exchange rate on output volatility. We find a negative link between the degree of inflexibility and output volatility: the higher the inflexibility of the exchange rate regime the lower the output volatility. This unusual result may be attributed to a ‘diminishing returns’ dynamics that would make higher inflexibility less effective to deter output volatility.
publishDate 2012
dc.date.none.fl_str_mv 2012
dc.type.none.fl_str_mv info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/conferenceObject
Congreso
Book
http://purl.org/coar/resource_type/c_5794
info:ar-repo/semantics/documentoDeConferencia
status_str publishedVersion
format conferenceObject
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/272730
"Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"; XLVII Reunión Annual de la Asociación Argentina de Economía Política; Trelew; Argentina; 2012; 1-22
978-987-28590-0-8
1852-0022
CONICET Digital
CONICET
url http://hdl.handle.net/11336/272730
identifier_str_mv "Let it float: empirical evidence on de facto exchange rate regimes and output volatility in Latin America"; XLVII Reunión Annual de la Asociación Argentina de Economía Política; Trelew; Argentina; 2012; 1-22
978-987-28590-0-8
1852-0022
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/site/que.html
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.coverage.none.fl_str_mv Nacional
dc.publisher.none.fl_str_mv Asociación Argentina de Economía Política
publisher.none.fl_str_mv Asociación Argentina de Economía Política
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
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score 13.22299

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