To examinewhether a country's exchangerate regimeSwitching from a floatingregime to an intermediatehasany impact on inflation andgrowth performance inregime might not reduceinflation.transition economies, Doma,,Peters, and Yuzefovich
float-whena country whosedevelopan empirical framework thataddresses some of fundamentalsmake it unlikely to adoptanother regimethe main problemsplaguing empirical work in thisstrand
a floatingregime-results in lower inflation.of the literature:the
Based on their results,it is not possible to infer more
the exchangerate regime,
aboutone particular exchangerate regime being superior
to another in terms of growthperformance. ButEmpirical results demonstratethat the exchange rateempirical findings do underscorethe different effectsregime
affectinflation performance. The resultsthat policy variables-andother variables influencingsuggest that:economic activity-haveon growth under differentTransitioncountries with intermediate arrangementsexchange-rate arrangements.might reduce inflation if theywere to adopt a fixedregime.This paper-aproduct of the PovertyReduction and EconomicManagement SectorUnit, Europe andCentral AsiaRegion-is part of alarger effort in the regionto understand the linksbetween exchange ratearrangements andmacroeconomic performancein transitioneconomies. Copies of thepaper are available free fromthe World Bank, 1818H StreetNW,Washington, DC20433. Please contactArmandaCarcani, room H4-326,telephone 202-473-0241,fax 202-522-2755,email address firstname.lastname@example.org.PolicyResearch WorkingPapers are also posted onthe Web at http://econ.worldbank.org. Theauthors may be contactedat email@example.com firstname.lastname@example.org.July 2001.
he findingsof work in progressoencouragehe exchange
development issues.An objectiveof the series s to getthe findings ouitqauickly, venif the presentations are lessthan fully polished. Thepapers carry the names ofthe authors and should be citedaccordingly. The findings,interpretations, and conclusionsexpressed in thispaper are entirely those ofthe autbors. They do notnecessarilyrepresent the viewof the World Bank, its ExecutiveDirectors, or thecountries they represent.
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