Does the Exchange Rate Regime affect Macroeconomic Performance ? Evidence from Transition Economies

  title={Does the Exchange Rate Regime affect Macroeconomic Performance ? Evidence from Transition Economies},
  author={Ilker Domaç and Kyle C Peters and Yevgeny Yuzefovich},
To examine whether the exchange rate regime in place has any impact on inflation and growth performance in transition economies, the study develops an empirical framework that addresses some of the main problems plaguing empirical work in this strand of the literature, namely the Lucas critique, endogeneity of the exchange rate regime, and the sample selection problem. Empirical results demonstrate that exchange rate regime does make a difference for inflation performance. The findings indicate… CONTINUE READING


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