TY - BOOK ID - 84783039 TI - Inflation Targeting and Exchange Rate Regimes in Emerging Markets AU - Ebeke, Christian. AU - Fouejieu, Armand. PY - 2015 SN - 1513521713 1513576828 1513599984 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Inflation KW - Money and Monetary Policy KW - Monetary Policy KW - Price Level KW - Deflation KW - Currency KW - Foreign exchange KW - Monetary economics KW - Macroeconomics KW - Exchange rate arrangements KW - Inflation targeting KW - Exchange rate flexibility KW - Exchange rates KW - Monetary policy KW - Prices KW - United States UR - https://www.unicat.be/uniCat?func=search&query=sysid:84783039 AB - This paper investigates the effects of the adoption of inflation targeting (IT) on the choice of exchange rate regime in emerging markets (EMs), conditional on certain macroeconomic conditions. Using a large sample of EMs and after controlling for the selection bias associated with the adoption of IT, we find that IT countries on average have a relatively more flexible exchange rate regime than other EMs. However, the flexibility of the exchange rate regime shows strong heterogeneity among IT countries depending on their degree of openness and exposure to FX risks. Moreover, we find that the marginal effect of IT adoption on the exchange rate flexibility increases with the duration of the IT regime in place, and with the propensity scores to adopt it. ER -