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A Faith-based Initiative: Does a Flexible Exchange Rate Regime Really Facilitate Current Account Adjustment?

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Author(s)
Chinn, Menzie D.; Wei, Shang-Jin
Date
2008
Series
La Follette School Working Papers
Abstract
The authors find no strong tie between exchange rate regime flexibility and the rate of current account reversion, even after accounting for economic development, trade and capital account openness. They also find that the endogenous selection of exchange rate regimes does not explain the observed lack of correlation.
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http://digital.library.wisc.edu/1793/36246 
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