01737cas a2200241 a 4500 AALejournalIMF001389 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846553 1018-5941 BD-DhAAL BD-DhAAL Poirson, Helene. How Do Countries Choose their Exchange Rate Regime? / Helene Poirson. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the determinants of exchange rate regime choice in 93 countries during 1990-98. Cross-country analysis of variations in international reserves and nominal exchange rates shows that (i) truly fixed pegs and independent floats differ significantly from other regimes and (ii) significant discrepancies exist between de jure and de facto flexibility. Regression results highlight the influence of political factors (political instability and government temptation to inflate), adequacy of reserves, dollarization (currency substitution), exchange rate risk exposure, and some traditional optimal currency area criteria, in particular capital mobility, on exchange rate regime selection. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2001/046 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/046/001.2001.issue-046-en.xml IMF e-Library