The paper explores the interconnections between foreign capital flows and the exchange rate regime switching in developing countries. We formulate the exchange rate regime switching as annual time series of binary/ordered variables employing de facto classification of exchange rate arrangements...

Intro -- Contents -- I. INTRODUCTION -- II. BACKGROUND -- III. IDENTIFYING CAPITAL ACCOUNT CRISES EPISODES -- IV. ESTIMATION AND RESULTS -- V. IMF SUPPORT AND CRISIS PREVENTION -- VI. CONCLUDING REMARKS -- References.