The authors apply regime-switching methods to a monetarist model of exchange rates and identify well-defined intervention policy cycles. The policy response indices include a standard exchange market pressure-based index and a model-based volatility ratio that is endogenized relative to Japan,...

It is well accepted that exchange rate policy in many emerging markets has been characterized by shifts between a stronger and weaker commitment to peg. This raises the following questions, which we address in our paper: Does intervention policy exhibit clearly defined and periodic shifts? What...

The authors apply regime-switching methods to a monetarist model of exchange rates and identify well-defined intervention policy cycles. The policy response indices include a standard exchange market pressure-based index and a model-based volatility ratio that is endogenized relative to Japan,...

Exchange rate policy in many emerging markets shifts between a stronger and weaker commitment to peg. This observation raises the following questions, which we address in our paper: Does intervention policy exhibit switching? And if so, what causes policy to shift? The theoretical literature...

Intro -- Contents -- Preface -- Acknowledgments -- About the Contributors -- Abbreviations -- Chapter 1 Getting the Most out of Central America's Free Trade Agreements -- What Is the Expected Impact on Trade Volumes from Central America's Efforts to Liberalize and Promote Trade? -- What Is the...

In early January 2003, the United States and Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua launched official negotiations for the Central American Free Trade Agreement (CAFTA), a treaty that would expand NAFTA-style trade barrier reductions to Central America. With deeper trade...