Levy-Yeyati, Eduardo Levy; Sturzenegger, Federico - 2009
This paper studies the impact of exchange rate regimes on inflation, nominal money growth, real interes rates, and GDP … growth. We find that, for nonindustrial economies, long pegs (lasting five or more years) are associated with lower inflation … than floats, but at the cost of slower growth. A similar trade-off between inflation and groth is still present in the case …