Jump to ContentJump to Main Navigation
Demanding DevaluationExchange Rate Politics in the Developing World$
Users without a subscription are not able to see the full content.

David A. Steinberg

Print publication date: 2015

Print ISBN-13: 9780801453847

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801453847.001.0001

Show Summary Details
Page of

PRINTED FROM Cornell University Press SCHOLARSHIP ONLINE (www.cornell.universitypressscholarship.com). (c) Copyright University of Cornell University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in Cornell for personal use. date: 28 September 2021

Cross-Country Patterns in Exchange Rate Policy and Preferences

Cross-Country Patterns in Exchange Rate Policy and Preferences

Chapter:
(p.55) 2 Cross-Country Patterns in Exchange Rate Policy and Preferences
Source:
Demanding Devaluation
Author(s):

David A. Steinberg

Publisher:
Cornell University Press
DOI:10.7591/cornell/9780801453847.003.0003

This chapter uses two different cross-national quantitative datasets to address the following question: Why do some developing countries undervalue their exchange rates while others maintain overvalued exchange rates? First, it examines which countries are most likely to maintain undervalued exchange rates, using data on as many as one hundred twenty developing countries from 1975 to 2006. The data indicate that exchange rates are most undervalued when countries combine powerful industrial sectors with state control over labor and financial markets. Second, it analyzes survey data on about two thousand manufacturing firms from over fifty countries in the year 1999 to understand whether and when industrialists favor undervalued exchange rates. These analyses show that manufacturing firms are more supportive of undervalued exchange rates in countries with state-controlled labor and financial systems than they are in other conditions.

Keywords:   developing countries, exchange rate policy, monetary policy, undervalued exchange rates, overvalued exchange rates, manufacturing firms

Cornell Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.