IDEAS home Printed from
   My bibliography  Save this article

Democracy and exchange rate regime choice


  • J. Russell


This paper takes a new look at the relationship between democracy and exchange rate regimes. Evidence from a cluster analysis and a panel analysis suggests that democracies are not all equally likely to float their exchange rates. While democracies are more likely to float than autocracies are, established democracies are more likely to choose a fixed exchange rate regime because they are better able than transition democracies to make the credible commitments needed for a cooperative arrangement. More established democracies are more able to join cooperative arrangements that allow them to make a less constrained choice between floating and fixing.

Suggested Citation

  • J. Russell, 2008. "Democracy and exchange rate regime choice," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 1(4), pages 339-354.
  • Handle: RePEc:ids:ijtrgm:v:1:y:2008:i:4:p:339-354

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijtrgm:v:1:y:2008:i:4:p:339-354. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Darren Simpson). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.