Recent studies on the growth effects of exchange rate regimes offer a wide range of different, sometimes contradictory results. In this paper, we systematically compare three prominent contributions in this field. Using a common data set, a common specification and common estimation methods, we...

We introduce a model in which agents observe signals about the state of the world, and some signals are open to interpretation. Our decision makers first interpret each signal based on their current belief and then form a posterior on the sequence of interpreted signals. This ‘double...