look at the impact of "mistakes" in exchange rate regime choice on actual (nominal) exchange rate volatility. Countries … exchange rate volatility than other countries having a fixed exchange rate regime. We also invetigate the role of such mistakes …

simple open economy model where increased foreign exchange reserves reduce the costs of liquidity risk. Given the amount of … investment and economic growth. We provide empirical support for our theoretical analysis using panel data from the Penn World …

an external shock led by a hike in US Fed foreign interest rates may impact growth and income distribution in a … developing country under different policy responses. The shock forces the country to apply at least one contractionary … average growth rates by providing liquidity in foreign currency. …