4 Domestic Needs for Foreign Finance and Exchange Rate Regime Choice in Developing Countries, with Special Reference to the Turkish Experience

NOTES

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• Larrain and Velasco . 2001 . 9 – 10 . See
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• 2001 . 20 – 21 . Two relevant studies along the same path are Leonardo Leiderman and Gil Bufman, “Searching for Nominal Anchors in Shock-Prone Economies in the 1990s: Inflation Targets and Exchange Rate Bands,” Working Paper 16–96, Foerder Institute for Economic Research, Tel-Aviv University, June 1996, and Larrain and Velascopp. See also Table 4
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• Hernandez , Leonardo and Montiel , Peter J. 2001 . “Post-Crisis Exchange Rate Policy in Five Asian Countries: Filling in the Hollow Middle?,” IMF . mimeograph
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• 1993 . Economic Crises and Long-Term Growth in Turkey Washington, DC : The World Bank . For a detailed analysis of these issues, among others, see Ziya Öniş and James Riedel
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• Levy-Yeyati , Eduardo and Sturzenegger , Federico . 2001 . “Exchange Rate Regimes and Economic Performance,” mimeograph Vol. 47 , 62 – 98 . IMF Staff Papers . See, Vol
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• 2001 . De facto classifications by Levy-Yeyati and Sturzenegger are not free of problems. For example, applying their classification to Turkey's ER regime in the 1990s, one arrives at the conclusion that it was a free float, which is not true. The stumbling block for this typology lies in the fact that the authors base their assumptions on the use of the dollar exchange rate. Had they used the weighted basket of the dollar and the mark it would have been possible to classify the ER regime in Turkey throughout the 1990s as a managed float. For a demonstration of the difference, see Figure 2
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• The list of countries included in the data set is available from the authors on request
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• Edwards , Sebastian . 2001 . “Exchange Rate Regimes, Capital Flows and Crisis Prevention,” . In NBER Working Paper , No.8529 See
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• Edwards , Sebastian and Savastano , Miguel A. April 1998 . “The Morning After: The Mexican Peso in the Aftermath of the 1994 Currency Crisis,” . In NBER Working Paper , No.6516 April ,
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• Ibid 41 See, p
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• Calvo , Guillermo . 1999 . “Fixed versus Flexible Exchange Rates: Preliminaries of a Turn-of-Millennium Rematch,” mimeograph University of Maryland .
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