6+EXCHANGE+RATE+REGIME+DURABILITY.pdf

EXCHANGE RATE REGIME DURABILITY AND PERFORMANCE IN DEVELOPING VERSUS ADVANCED ECONOMIES Aasim M. Husain, Ashoka Mody Kenneth S. Rogoff July 2004 This paper was prepared for the Carnegie-Rochester Conference (April 2004) and published in the Journal of Monetary Economics , January 2005, Volume 52:1, 35-64. It is posted with permission from Elsevier. It draws on the authors’ earlier work with Robin Brooks and Nienke Oomes (Rogoff et al., 2004), to which contributions from Andrew Berg, Grace Juhn, Paolo Mauro, and Antonio Spilimbergo are also gratefully acknowledged. The authors are indebted to Rex Ghosh for providing his dataset and to Young Kim and Eisuke Okada for valuable research assistance. For many helpful comments, we would like to thank, without implicating, David Backus, Tam Bayoumi, Michael Bordo, Agustín Carstens, Barry Eichengreen, Inci Otker-Robe, Charles Plosser, Jacques Polak, Carmen Reinhart, David Robinson, Miguel Savastano, Federico Sturzenegger, Lars Svensson, participants at the Carnegie-Rochester Conference, and an anonymous referee. The views expressed in this paper are of those of the authors and not necessarily those of the International Monetary Fund. E