xxx Contents of Volume 5

CHAPTER 64 Monetary and Exchange Rate Policies 4215

Eduardo Levy Yeyati and Federico Sturzenegger
Abstract 4215
Keywords 4216
1. Introduction 4216
1.1 Do nominal variables matter for development? 4217
2. What Do We Talk About When We Talk About MERP? 4220
2.1 Classifying exchange rate policies 4224
2.2 Exchange rate policy trends in the post-Bretton Woods era: A casual
glance at the distribution of regime choices 4230
2.3 Inside the nonfloat group 4233
2.4 Monetary policy: From exchange rate anchors to inflation targeting 4236
3. Why Do We Talk About MERP? 4240
3.1 The link between exchange rates and growth revisited 4241
3.2 ERR and output volatility 4246
3.3 MERP on price stability 4247
3.4 MERP on income distribution 4248
3.5 Indirect links: The integration channel 4249
3.6 Indirect links: The financial channel 4251
3.7 Summing up 4254
4. The Making of a Policy 4254
4.1 Exchange rate anchors in the 1980s 4254
4.2 Financial integration and financial crises in the 1990s 4258
4.3 Float cum inflation targeting (FIT) 4260
4.4 The comeback of exchange rate regimes: Leaning against the
appreciation wind 4263
5. Where Do We Stand? 4267
End Notes 4269
References 4273

CHAPTER 65 Financial Globalization and Economic Policies 4283

M. Ayhan Kose, Eswar Prasad, Kenneth Rogoff and Shang-Jin Wei

Abstract 4284
Keywords 4284
1. Introduction 4284
2. Financial Globalization: Measurement and Trends 4288
2.1 How to measure financial integration? 4288
2.2 Evolution of financial globalization: Some basic stylized facts 4289
2.3 Factors driving financial globalization 4292