Levy-Yeyati, Eduardo; Sturzenegger, Federico; Reggio, Iliana - Departamento de Economía, Universidad Carlos III de Madrid - 2009
The literature has identified three main approaches to account for the way exchange rate regimes are chosen: i) the optimal currency area theory; ii) the financial view, which highlights the consequences of international financial integration; and iii) the political view, which stresses the use...