
The Modern History of Exchange Rate Arrangements: A Reinterpretation
Author(s) -
Carmen Reinhart,
Kenneth Rogoff
Publication year - 2002
Language(s) - English
Resource type - Reports
DOI - 10.3386/w8963
Subject(s) - reinterpretation , exchange rate , history , economics , philosophy , monetary economics , aesthetics
We develop a novel system of reclassifying historical exchange rate regimes. One key difference between our study and previous classifications is that we employ monthly data on market-determined parallel exchange rates going back to 1946 for 153 countries. Our approach differs from the IMF official classification (which we show to be only a little better than random), it also differs radically from all previous attempts at historical reclassification. Our classification points to a rethinking of economic performance under alternative exchange rate regimes. Indeed, the breakup of Bretton Woods had less impact on exchange rate regimes than is popularly believed.