We test whether fixed exchange rate regimes are ever credible in emerging markets by analyzing the behavior of short-term domestic trade bills across countries during the classical gold standard period, the most widely used hard peg in modern financial history. We exploit the fact that global...

This paper studies the relationship between financial structure and the welfare consequences of fixed exchange rate regimes in small open emerging economies with downward nominal wage rigidity. The paper presents two surprising results. First, a pegging economy might be better off with a closed...

Auf den Devisenmärkten der mittel- und osteuropäischen Staaten kam es seit dem Beginn der Neunzigerjahre wiederholt zu spekulativem Druck. Eine Vielzahl von währungspolitischen Problemen und Währungskrisen infolge von Anpassungsprozessen in den Volkswirtschaften, inkonsistenten...

The insulating properties of flexible exchange rates have long been a highly contentious issue in emerging markets - not least in Asian emerging markets. A number of recent theoretical and empirical studies question whether a trade-off exists between rigid exchange rate regimes and insulation...