The effect of exchange rate regime’s natureon inflation:Analyze the relationshipbyusingpanel data

بركة محمد; محمد جبور

بركة محمد يريسّتلامولعوةّيراجّتلامولعلاوةّيداصتقلاامولعلاةيّلجامعة قاصدي مرباح ورقلة
محمد جبور كوةّيراجّتلامولعلاوةّيداصتقلاامولعلاةيّليريسّتلامولعجامعة سعيدة

Keywords: Exchange rate regime, Inflation, Classification of exchange rate regime, Dynamic panel data, GMM

Abstract

The objective of this study is to estimate the impact of exchange rate regimes on inflation for a simple of 50 countries, over the period from1980-2008, us ing panel data by us ing the method of generalized moments estimation recently developed by Blunde ll and Bond (1998).The econometric analysis reveals thatpegged regimesaffects negatively and significantly inflation. Our results indicate also a positive and highly s ignificant effect of thefloating exchange rate regimeon inflation