This paper investigates the choice of exchange rate regime by analyzing both de jure and de facto regime choices for the period 1973-1996. It finds that economic fundamentals, financial and political institutional variables provide relevant guidance for de jure regime choices. However, shocks...

This paper examines some competing views on currency regime choice by applying the dynamic multi-state Markov (MSM) model to the regime transitions of 166 countries from 1980 to 1999. The findings suggest that the bipolar view is valid only in the long run and for a reason quite different from...