000			01378nam a2200205Ia 4500
008			140323b2005 xxu||||| |||| 00| 0 eng d
082			_a332.45
100			_aFiess, Norbert _926516
245			_aRegime-switching in exchange rate policy and balance sheet effects _cFiess, Norbert
260			_aWashington, D.C. _bWorld Bank _c2005
300			_a36 p.
440			_aPolicy Research Working Paper, no. 3653 _935384
500			_aIncludes bibliographical references.
520			_aThe authors apply regime-switching methods to a monetarist model of exchange rates and identify well-defined intervention policy cycles. The policy response indices include a standard exchange market pressure-based index and a model-based volatility ratio that is endogenized relative to Japan, assumed to be a ""benchmark"" floater. The authors find strong evidence that balance sheet effects, proxied by the stock ratio of external liabilities to assets, and economic performance, as measured by GDP and stock market indices, determine the cost of the regime shift. They use a panel of quarterly data from 1985 to 2004 for a sample of 15 countries, mostly in East Asia and Latin America.
650			_aForeign exchange rates - Developing countries
650			_aMonetary policy - Developing countries
700			_aShankar, Rashmi _925033
942			_cBK
999			_c296506 _d296506