Berganza, Juan Carlos; Broto, Carmen - Banco de España - 2011
IT", which imply a fully flexible exchange rate, or applying a "flexible IT", which entails a de facto managed floating … exchange rate with FX interventions to moderate exchange rate volatility. Using a panel data model for 37 countries we find … that, although IT lead to higher exchange rate instability than alternative regimes, FX interventions in some IT countries …