Choice of Exchange Rate Regime in Central and Eastern European Countries: an Empirical Analysis
AbstractThis 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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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0501.
Date of creation: Mar 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-04-12 (All new papers)
- NEP-CBA-2008-04-12 (Central Banking)
- NEP-IFN-2008-04-12 (International Finance)
- NEP-OPM-2008-04-12 (Open Economy Macroeconomics)
- NEP-TRA-2008-04-12 (Transition Economics)
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