This paper provides evidence that the choice of the foreign exchange regime is not of first order importance for achieving high output growth. It is argued that due to the forward looking nature of the foreign exchange market, exchange rate stability hinges on the current and anticipated...

We endogenously search for the single most decisive structural break in exchange rate for a group of European transition countries under the hypothesis that structural breaks in exchange rates are driven by exchange rate policies. Detected breaks were frequently associated with major changes in...