Does a Floating Exchange Rate Regime Decrease the Negative Impacts of An Economic Crisis?
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesisAlternative title
Floating vs Fixed Exchange Rate (English)
This paper is written to address the problem of having floating or fixed exchange rates. My results showed that between 2008 and 2009, having a free floating exchange rate actually worsened the percentage change in GDP per capita by -2.58331 %. On the other hand, a second regression analysis estimated that a floating exchange rate increased the percentage change in GDP per capita between 2008 and 2009 by 2.8914 %.
The estimate was not however statistically significant at any of the standard significance levels.
By taking the two extremes perhaps one could investigate a superior exchange rate regime in terms of protecting against global economic crisis. Many countries have chosen to adopt a managed floating instead but these were not looked at very thoroughly in the paper.
Place, publisher, year, edition, pages
2015. , 32 p.
IdentifiersURN: urn:nbn:se:sh:diva-27870OAI: oai:DiVA.org:sh-27870DiVA: diva2:826846
Subject / course
2015-06-25, 21:54 (English)
UppsokSocial and Behavioural Science, Law
Blomskog, Stig, Högskolelektor
Bali Swain, Ranjula, Professor