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

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  • Paolo Mauro
  • Grace Juhn

Abstract

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.

Suggested Citation

  • Paolo Mauro & Grace Juhn, 2002. "Long-Run Determinants of Exchange Rate Regimes; A Simple Sensitivity Analysis," IMF Working Papers 02/104, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:02/104
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    References listed on IDEAS

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    Keywords

    Exchange rate regimes; Foreign exchange; Sensitivity analysis; exchange rate; exchange rate regime; trade openness; terms of trade;

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