Fixed versus Flexible Exchange Rates: Which Provides More Fiscal Discipline?

276 citations recorded by the source corpus.

Citations in the corpus

Surfing the Waves of Globalization: Asia and Financial Globalization in the Context of the Trilemma (2010, unknown): “One possible explanation is that economies with fixed exchange rates tend to lack fiscal discipline and eventually experience devaluation as argued by Tornell and Velasco (2000).(30) When we include the interaction term between the crisis dummy and the ERS variable to isolate the effect of exchange ”
Exchange Rate Management and Crisis Susceptibility: A Reassessment (2014, unknown): “…attracts nonresident deposits and expands bank balance sheets (Montiel and Reinhart, 2001).14 Finally, by temporarily suppressing the effects of lax fiscal policy on inflation, less flexible exchange rate regimes may impose less fiscal discipline than flexible regimes (Tornell and Velasco, 2000).”
Living and Dying with Hard Pegs: The Rise and Fall of Argentina's Currency Board (2003, unknown): “7 After a major step increase between 1991 and 1994, banks deposits continued rising steadily from 17 percent of GDP by the end of 1994 to 26 by the end of 1998. Calomiris and Powell (2001) compellingly show that convertibility is indeed key to understanding the rapid growth and strengthening of the”
Exchange rate regime durability and performance in developing versus advanced economies (2005, unknown): “Tornell and Velasco ( 2000 ) raise the possibility that the inflationary gains from fixed regimes are illusory .”