01858cas a2200253 a 4500 AALejournalIMF015584 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513586267 1018-5941 BD-DhAAL BD-DhAAL Ebeke, Christian. Inflation Targeting and Exchange Rate Regimes in Emerging Markets / Christian Ebeke, Armand Fouejieu. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the effects of the adoption of inflation targeting (IT) on the choice of exchange rate regime in emerging markets (EMs), conditional on certain macroeconomic conditions. Using a large sample of EMs and after controlling for the selection bias associated with the adoption of IT, we find that IT countries on average have a relatively more flexible exchange rate regime than other EMs. However, the flexibility of the exchange rate regime shows strong heterogeneity among IT countries depending on their degree of openness and exposure to FX risks. Moreover, we find that the marginal effect of IT adoption on the exchange rate flexibility increases with the duration of the IT regime in place, and with the propensity scores to adopt it. Mode of access: Internet Fouejieu, Armand. IMF Working Papers; Working Paper ; No. 2015/228 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/228/001.2015.issue-228-en.xml IMF e-Library