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Choice of Exchange Rate Regime in Central and Eastern European Countries: an Empirical Analysis

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Author Info
Agnieszka Markiewicz

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Abstract

This paper identifies the sources of divergences between current exchange rate policies in Central and Eastern European countries (CEECs). We use an ordered logit model for the official (de jure) and the actual (de facto) exchange rate classifications. We find that the differences of the exchange rate strategies among CEECs cannot be explained by these classifications. Financial and trade openness are the major determinants of divergences among exchange rate strategies in CEECs. More financially and trade integrated countries switch to more rigid regimes.

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File URL: http://www.econ.kuleuven.be/eng/ew/discussionpapers/Dps05/Dps0501.pdf
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Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0501.

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Date of creation: Mar 2005
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Handle: RePEc:ete:ceswps:ces0501

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  1. Sfia Daly, 2007. "The Choice of Exchange Rate Regimes in the MENA Countries: a Probit Analysis," William Davidson Institute Working Papers Series wp899, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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