Long-Run Determinants of Exchange Rate Regimes: A Simple Sensitivity Analysis

June 1, 2002

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Many studies have attempted to uncover empirical regularities in how countries choose their exchange rate regimes. We survey previous studies showing that, taken as a whole, the literature is inconclusive. Drawing on a large dataset with many potential explanatory variables and a variety of exchange rate regime classifications, we test old and new theories and confirm that no robust empirical regularities emerge.

Subject: Balance of payments, Capital controls, Conventional peg, Exchange rate arrangements, Exchange rates, Foreign exchange, Inflation, Prices

Keywords: Capital controls, Conventional peg, countries' self-reporting, country, exchange rate, Exchange rate arrangements, exchange rate regime, Exchange Rate Regimes, Exchange rates, IMF classification, Inflation, intermediate regime, predictive power, regime, regime choice, regime classification, regime group, Sensitivity Analysis, standard deviation, transition country, WP

Pages:
31
Volume:
2002
DOI:
https://doi.org/10.5089/9781451852776.001
Issue:
104
Series:
Working Paper No. 2002/104
Stock No:
WPIEA1042002
ISBN:
9781451852776
ISSN:
1018-5941

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