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Objective: The objective of the article is to determine which exchange rate regime provides higher bilateral trade … those that might affect the value of bilateral trade and those that are differently affected by fixed exchange rate regime … and currency union. These variables are trade openness, trading partner trade importance, similarities of government debt …
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This paper investigates inconsistencies between countries' official exchange rate regime declarations (the so-called de jure exchange rate regimes) and their actual policy (de facto exchange rate regimes). These exchange rate regime gaps decrease the credibility of monetary policy and are...
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evidence of benefits in emerging economies; (2) Europe's monetary union has increased intra-European trade and capital flows …
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This paper introduces a theoretical framework for liquidity management under fixed exchange rate arrangement, derived from the price-specie flow mechanism of David Hume. The framework highlights that the risk of short-term money market rates un-anchoring from the uncovered interest rate parity...
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