Choice of Exchange Rate Regime in Central and Eastern European Countries: An Empirical Analysis
نویسنده
چکیده
In this paper we identify the main determinants of the exchange rate regimes in Central and Eastern European Countries (CEECs). For this purpose, we use an ordered logit model for the official (de jure) and the actual (de facto) exchange rate classifications. We find that trade openness and concentration, inflation differentials, international reserves stocks, and financial conditions are the main determinants of the exchange rate regimes in CEECs. JEL Classification: E52, F31, F33, F41 ∗Center for Economic Studies, Department of Economics, Naamsestraat 69, 3000 Leuven, Belgium, [email protected]. I thank Paul De Grauwe, Kristien De Smedts and Geert Dhaene for useful comments.
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