International Journal of Developing and Emerging Economies (IJDEE)

EA Journals

Choosing an Optimal Exchange Rate Regime: A Critical Literature Review


Résumé :Cet article est une revue critique des contributions aussi bien théoriques qu’empiriques du choix du régime de change.Malgré la profusion des travaux théoriques concernant chaque approche, ce papier vise à éclaircir les zones de recherche où notre compréhension est incomplète.Ce papier comporte :(i) la distinction entre les régimes de change déclarés (de jure) et effectifs(de facto), et les différentes approches du choix du régime de change,(ii) une revue critique des apports théoriques et empiriques, (iii) une conclusion

Abstract : This paper critically reviews the theoretical and empirical literature on the choice of exchange rate regime.Although much has been learned in each approach, this paper highlights the areas of research in which our understanding of exchange rate regime is still incomplete. Prominent issues include: (i) the discrepancy between declared and actual regime, and the different approaches of the exchange regime choice (ii) the critical review of the theoretical and empirical literature, (iii) the conclusion.


Keywords: Credibility, Exchange rate regime, Flexibility, The bipolar view., The structural approach

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