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Choice of exchange rate regime and currency zones

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  • Kato, Isamu
  • Uctum, Merih

Abstract

We investigate the choice of exchange rate regimes in different currency zones (the US dollar, Euro and the CFA zones), and geographic regions (Latin America and Caribbean, East Asia and Pacific, Europe, core Europe, and the CFA countries). We control for country and regional heterogeneity, time dummies, endogeneity and perform various robustness checks. Results from regional analysis substantially differ from the aggregate analysis despite controlling for random effects. Even at the regional level controlling for currency zones affects our findings. Regional results are generally robust to regime measurement, and sample changes (number of observations).

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Bibliographic Info

Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 17 (2008)
Issue (Month): 3 ()
Pages: 436-456

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Handle: RePEc:eee:reveco:v:17:y:2008:i:3:p:436-456

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Web page: http://www.elsevier.com/locate/inca/620165

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Cited by:
  1. Tsen, Wong Hock, 2011. "The real exchange rate determination: An empirical investigation," International Review of Economics & Finance, Elsevier, vol. 20(4), pages 800-811, October.
  2. Yeh, Kuo-chun, 2012. "Renminbi in the future international monetary system," International Review of Economics & Finance, Elsevier, vol. 21(1), pages 106-114.

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