Sosvilla-Rivero, SimónRamos-Herrera, María del Carmen2023-06-192023-06-192014-08Bailliu, J., Lafrance, R. and Perrault, J. F. (2003) Does exchange rate policy matter for growth?, International Finance, 6, 381–414. doi:10.1111/j.1367-0271.2003.00123.x . De Grauwe, P. and Schnabl, G. (2004) Exchange rates regimes and macroeconomic stability in Central and Eastern Europe, Working Paper 1182, CESifo, Munich. Dornbusch, R. (2001) Fewer monies better monies, discussion on exchange rates and the choice of monetary-policy regimes, The American Economic Review, 91, 238–42. doi:10.1257/aer.91.2.238 . Edwards, S. and Levy-Yeyati, E. L. (2005) Flexible exchange rates as shock absorbers, European Economic Review, 49, 2079–105. doi:10.1016/j.euroecorev.2004.07.002 . Friedman, M. (1953) The case for flexible exchange rates, in Essays in Positive Economics, Friedman, M. (Ed), University of Chicago Press, Chicago, IL, pp. 157–203. Ghosh, A., Gulde, A. and Wolf, H. (2002) Exchange Rate Regimes: Choices and Consequences, MIT Press, Cambridge, MA. Ilzetzki, E. O., Reinhart, C. M. and Rogoff, K. S. (2011) Exchange rate arrangements entering the 21st century: which anchor will hold? Unpublished, University of Maryland and Harvard University. Mundell, R. A. (1995) Exchange rate systems and economic growth, Rivista Di Politica Economica, 83, 3–36. Newey, W. K. and West, K. D. (1987) A simple, positive semidefinite, heteroskedasticity and autocorrelation consistent covariance matrix, Econometrica, 55, 703–8. doi:10.2307/1913610 . Obstfeld, M. and Rogoff, K. (2000) New directions for stochastic open economy models, Journal of International Economics, 50, 117–53. doi:10.1016/S0022-1996(99)00034-3 . Petreski, M. (2009) Exchange-rate regime and economic growth: a review of the theoretical and empirical literature, Economics, Discussion Paper No. 2009–31, Kiel Institute for the World Economy, Kiel. Reinhart, C. M. and Rogoff, K. S. (2004) The modern history of exchange rate arrangements: a reinterpretation, The Quarterly Journal of Economics, 119, 1–48. doi:10.1162/003355304772839515 .1350-485110.1080/13504851.2014.894625https://hdl.handle.net/20.500.14352/34695Based on a dataset of 123 economies, this paper empirically investigates the relation between exchange-rate regimes and economic growth. We find that growth performance is best under intermediate exchange rate regimes, while the smallest growth rates are associated with flexible exchange rates. Nevertheless, this conclusion is tempered when we analyze the countries by income level: even though countries that adopt intermediate exchange-rate regimes are characterized by higher economic growth, the higher the level of income, less difference in growth performance across exchange rate regimes.engjournal articlehttp://www.tandfonline.com/loi/rael20#.VW3gF8_tmkpopen accessE42F31Exchange rate regimeEconomic growthDesarrollo económicoEconometría (Economía)Economía internacional5307.03 Modelos y Teorías del desarrollo Económico5307.04 Estudios del desarrollo Económico5302 Econometría5310 Economía Internacional