Abstract

This study of the impact of exchange rate regimes across the globe seeks to shed light on questions surrounding the impact of a managed exchange rate regime compared to a free floating exchange rate regime on a country’s economic growth. Additionally, this study looks into the possible superiority of different exchange rate regimes depending on the economic development of the nation it is implemented in. The first portion of this paper seeks to investigate prior research and reflect upon the current literature surrounding this topic. The rest of the paper deals with theoretical reasoning as to the implications of different exchange rate regimes, moving into an empirical section to test portions of the theory.