Centre for Finance, Credit and Macroeconomics (CFCM)
   
   
  

CFCM 19/03: Exchange rate flexibility: How should we measure it?

Summary

This paper examines the extent of agreement between some recent exchange rate classification schemes, and also assesses the merits of some continuous measures of exchange rate flexibility. There is a probability of between 18 and 28 percent that a peg in one classification scheme is coded as a float in a different scheme, or vice versa. This probability is much smaller for the tightest forms of peg and the most volatile floats. An appropriately selected numerical index of exchange rate flexibility is potentially very useful.

 

Download the PDF of this paper

Authors

Michael Bleaney and Mo Tian

 

View all CFCM discussion papers | View all School of Economics featured discussion papers

 

Posted on Wednesday 27th March 2019

Centre for Finance, Credit and Macroeconomics

Sir Clive Granger Building
University of Nottingham
University Park
Nottingham, NG7 2RD

+44 (0)115 951 5620