Recent research on exchange rate regimes has stressed the similarity amongst intermediate regimes (managed floats and "soft" pegs) rather than the traditional peg/float dichotomy. We investigate the choice of regime amongst hard pegs, soft pegs, managed floats and independent floats for a panel...

The median developing country has had significantly higher inflation than the median advanced country since the early 1980s. A model is presented in which a developing country may reduce inflationary expectations by pegging its exchange rate to the currency of an advanced country (or a basket of...

The procyclicality of fiscal policy that is prevalent in developing countries and emerging markets is well known. Its explanation is less clear. Recently, social inequality and the combination of corruption and democracy have been suggested as alternatives to the traditional explanation of these...