EU accession countries have strong incentives to stabilize the exchange rate with respect to the Euro as the nominal anchor. We present a microstructure model of the foreign exchange market based on technical trading that allows to categorize the de facto the exchange rate regimes and derive a...

We test the significance of the relationship between the exchange rate regime and the degree of structural reforms by estimating panel regressions for a world and an OECD country sample. The empirical results suggest a positive correlation between on the one side the adoption of an exchange rate...