{
  "title": "How Do Countries Choose their Exchange Rate Regime?",
  "publication": "IMF Working Papers, May 1, 2001",
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  "summary": "This paper investigates the determinants of exchange rate regime choice in 93 countries during 1990-98. Cross-country analysis of variations in international reserves and nominal exchange rates shows that (i) truly fixed pegs and independent floats differ significantly from other regimes and (ii) si",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Study scope: 93 countries during 1990-98.\n- Main analytical approach: cross-country analysis of variations in international reserves and nominal exchange rates; regression analysis of regime choice.\n- Key empirical distinctions:\n  - (i) truly fixed pegs and independent floats differ significantly from other regimes\n  - (ii) significant discrepancies exist between de jure and de facto flexibility"
    },
    {
      "heading": "Major empirical findings",
      "content": "- Fixed pegs and independent floats are empirically distinct from other exchange rate arrangements based on observed variations in international reserves and nominal exchange rates.\n- There are significant discrepancies between de jure classifications of exchange rate regimes and de facto exchange rate flexibility."
    },
    {
      "heading": "Determinants identified by regression results",
      "content": "- Political factors:\n  - political instability\n  - government temptation to inflate\n- Reserve adequacy:\n  - variations in international reserves influence regime choice\n- Currency substitution:\n  - dollarization (currency substitution)\n- Exchange rate risk:\n  - exchange rate risk exposure\n- Optimal currency area criteria and capital movements:\n  - some traditional optimal currency area criteria matter, in particular capital mobility\n- The regressions highlight the combined influence of the above factors on exchange rate regime selection."
    },
    {
      "heading": "Research and publication metadata",
      "content": "- Publication type: IMF Working Papers\n- Pages: 33\n- Volume: 2001\n- Issue: 046\n- Series: Working Paper No. 2001/046\n- DOI: https://doi.org/10.5089/9781451846553.001\n- ISBN: 9781451846553\n- ISSN: 1018-5941\n\nHélène Poirson, \"How Do Countries Choose their Exchange Rate Regime?\", May 1, 2001.\n\n---\n\n Content in this bundle\n\n- How Do Countries Choose Their Exchange Rate Regime? - WP/01/46\n  - How Do Countries Choose Their Exchange Rate Regime? - WP/01/46 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - How Do Countries Choose Their Exchange Rate Regime? - WP/01/46 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/how-do-countries-choose-their-exchange-rate-regime-4064"
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    "Authors: Hélène Poirson",
    "Published: May 1, 2001",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451846553.001",
    "Study scope: 93 countries during 1990-98.",
    "Main analytical approach: cross-country analysis of variations in international reserves and nominal exchange rates; regression analysis of regime choice.",
    "Key empirical distinctions:",
    "Fixed pegs and independent floats are empirically distinct from other exchange rate arrangements based on observed variations in international reserves and nominal exchange rates.",
    "There are significant discrepancies between de jure classifications of exchange rate regimes and de facto exchange rate flexibility.",
    "Political factors:",
    "Reserve adequacy:",
    "Currency substitution:",
    "Exchange rate risk:",
    "Optimal currency area criteria and capital movements:",
    "The regressions highlight the combined influence of the above factors on exchange rate regime selection.",
    "Publication type: IMF Working Papers",
    "Pages: 33",
    "Volume: 2001",
    "Issue: 046",
    "Series: Working Paper No. 2001/046",
    "DOI: https://doi.org/10.5089/9781451846553.001",
    "ISBN: 9781451846553",
    "ISSN: 1018-5941",
    "**How Do Countries Choose Their Exchange Rate Regime? - WP/01/46**"
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