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Mark my words: Information and the fear of declaring an exchange rate regime

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  • Méon, Pierre-Guillaume
  • Minne, Geoffrey
Abstract
This paper investigates the role of a free press and the circulation of information on the capacity of a country to declare an exchange regime that differs from the regime it implements de facto. We report consistent evidence that greater press freedom and easier access to information result in a lower probability of untruthfully reporting the de facto regime. These findings withstand a large set of robustness checks, including controlling for democracy and for the institutional and political environment, controlling for endogeneity, and using various estimation methods. The results are particularly strong for developing countries.

Suggested Citation

  • Méon, Pierre-Guillaume & Minne, Geoffrey, 2014. "Mark my words: Information and the fear of declaring an exchange rate regime," Journal of Development Economics, Elsevier, vol. 107(C), pages 244-261.
    • Handle: RePEc:eee:deveco:v:107:y:2014:i:c:p:244-261
    DOI: 10.1016/j.jdeveco.2013.12.005
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    3. Slimani, Slah & Ben Allem, Khawla, 2018. "Determinants of real exchange rate misalignment: An empirical analysis for MENA region," MPRA Paper 91605, University Library of Munich, Germany.
    4. Slimani, Slah & Ben allem, Khaoula, 2017. "Les déterminants du misalignement du taux de change réel : Analyse empirique pour le cas de la région MENA [Determinants of misalignment of the real exchange rate: An empirical analysis for the MEN," MPRA Paper 81247, University Library of Munich, Germany.

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    More about this item

    Keywords

    Official exchange rate regime; De facto exchange rate regime; Press freedom; Information; Fear of floating;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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