Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/180080 
Year of Publication: 
2015
Citation: 
[Journal:] Baltic Journal of Economics [ISSN:] 2334-4385 [Volume:] 15 [Issue:] 1 [Publisher:] Taylor & Francis [Place:] London [Year:] 2015 [Pages:] 18-37
Publisher: 
Taylor & Francis, London
Abstract: 
This paper attempts to identify implicit exchange-rate regimes for currencies of candidate countries vis-à-vis the euro. To that end, we apply three sequential procedures that consider the dynamics of exchange rates to data covering the period from 1999:01 to 2012:12. Our results would suggest that implicit bands have existed in many sub-periods for almost all currencies under study. Once we detect de facto discrepancies between de facto and de iure exchange-rate regimes, we make use of different methods to study the credibility of the detected fluctuation bands. The detected lack of credibility in a high percentage of the sample is robust to the use of several credibility tests, suggesting that economic agents do not behave as if these bands actually were in force at time of making their financial plans. These countries do not improve the confidence on the fluctuation bands as time evolves.
Subjects: 
credibility
exchange rates
exchange-rate regimes
implicit fluctuation bands
JEL: 
F31
F33
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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