publication . Report . Preprint . Other literature type . Part of book or chapter of book . Book . 2001

Core, Periphery, Exchange Rate Regimes, and Globalization

Michael D. Bordo; Marc Flandreau;
Open Access
  • Published: 01 Nov 2001
  • Publisher: National Bureau of Economic Research
  • Country: France
Abstract
In this paper we focus on the different historical regime experiences of the core and the periphery. Before 1914 advanced countries adhered to gold while periphery countries either emulated the advanced countries or floated. Some peripheral countries were especially vulnerable to financial crises and debt default in large part because of their extensive external debt obligations denominated in core country currencies. This left them with the difficult choice of floating but restricting external borrowing or devoting considerable resources to maintaining an extra hard peg. Today while advanced countries can successfully float, emergers who are less financially ma...
Subjects
free text keywords: currency mismatch; exchange rate regimes; Feldstein-Horioka tests, core; currency mismatch; exchange rate regimes; feldstein Horioka tests; financial depth; periphery, currency mismatch,exchange rate regimes,Feldstein-Horioka tests, Periphery, Financial integration, External debt, Default, Exchange-rate regime, Currency, Exchange rate, Economics, Globalization, Periphery countries, International economics, currency mismatch, exchange rate regimes, Feldstein-Horioka tests, JEL: F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, JEL : F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange, [ SHS.ECO ] Humanities and Social Sciences/Economies and finances, jel:F31, jel:F21, jel:F33

Jones and Obstfeld (1997), Bayoumi (1997), Obstfeld and Taylor (1998).4 These works 1973. As can be seen, the trend towards greater financial integration after 1973 captured

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