Currency Blocs in the 21 st Century
نویسنده
چکیده
Based on a classification of countries and territories according to their regime and anchor currency choice, the study considers the two major currency blocs of the present world. A nested logit regression suggests that long-term structural economic variables determine a given country’s currency bloc affiliation. The dollar bloc differs from the euro bloc in that there exists a group of countries that peg temporarily to the US dollar without having close economic affinities with the bloc. The estimated parameters are consistent with an additive random utility model interpretation. A currency bloc equilibrium in the spirit of Alesina and Barro (2002) is derived empirically. JEL codes: F02, F31, F33, E42, C25 * Christoph Fischer, Deutsche Bundesbank, Wilhelm-Epstein-Str.14, 60431 Frankfurt, Germany. +49-69-9566-2304. [email protected]. I would like to thank Stefan Gerlach, Ulrich Grosch, Heinz Herrmann, Mathias Hoffmann, Akito Matsumoto, Andy Rose and Mark Spiegel for their valuable suggestions and comments. All remaining errors are my own. The views in this paper are those of the author and do not necessarily reflect the views of the Deutsche Bundesbank, the Federal Reserve Bank of Dallas or the Federal Reserve System.
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تاریخ انتشار 2011