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Replication Data for: Fear of Floating and De Facto Exchange Rate Pegs with Multiple Key Currencies (with Thomas Plümper), International Studies Quarterly, 55 (4), 2011, pp. 1121-1142

Harvard Dataverse (Africa Rice Center, Bioversity International, CCAFS, CIAT, IFPRI, IRRI and WorldFish)

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Title Replication Data for: Fear of Floating and De Facto Exchange Rate Pegs with Multiple Key Currencies (with Thomas Plümper), International Studies Quarterly, 55 (4), 2011, pp. 1121-1142
 
Identifier https://doi.org/10.7910/DVN/BLNJZN
 
Creator Neumayer, Eric
 
Publisher Harvard Dataverse
 
Description This paper adopts and develops the ‘‘fear of floating’’ theory to explain
the decision to implement a de facto peg, the choice of anchor currency
among multiple key currencies, and the role of central bank independence
for these choices. We argue that since exchange rate
depreciations are passed-through into higher prices of imported goods,
avoiding the import of inflation provides an important motive to de
facto peg the exchange rate in import-dependent countries. This study
shows that the choice of anchor currency is determined by the degree
of dependence of the potentially pegging country on imports from the
key currency country and on imports from the key currency area, consisting
of all countries which have already pegged to this key currency.
The fear of floating approach also predicts that countries with more
independent central banks are more likely to de facto peg their
exchange rate since independent central banks are more averse to inflation
than governments and can de facto peg a country’s exchange rate
independently of the government.
 
Subject Social Sciences
 
Contributor Neumayer, Eric