Journal of Applied Finance & Banking

Banking Crises and Exchange Rate Politics

  • Pdf Icon [ Download ]
  • Times downloaded: 1342
  • Abstract

    The purpose of this paper is to examine whether the choice of exchange rate regime can affect the likelihood of banking crises in emerging countries. We estimate the impact of exchange rate arrangements on crises in a panel-data set of 56 emerging countries using a logit method. We find that adopting a fixed exchange rate diminishes the probability of occurrence of banking crises