The Impact of Exchange Rate Regimes on the Macroeconomic Performances

Abstract

This paper aims to study whether the choice of a particular exchange rate regime in a country may influence the macroeconomic performance. Yet, little consensus has emerged, at a theoretical level, about how exchange rate regimes affect inflation and growth. But evidence has shown that, while a pegged exchange regime leads to lower inflation and sometimes to slower productivity growth, a floating rate may lead to lower external deficit and to higher inflation. We propose to approach the relation between the exchange rate regime and the macroeconomic indicators.