Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212748 
Year of Publication: 
2012
Series/Report no.: 
BOFIT Discussion Papers No. 24/2012
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
Based on a classification of countries and territories according to their regime and anchor currency choice, the study considers the two major currency blocs of the present world. A nested logit regression suggests that long-term structural economic variables determine a given country's currency bloc affiliation. The dollar bloc differs from the euro bloc in that there exists a group of countries that peg temporarily to the US dollar without having close economic affinities with the bloc. The estimated parameters are consistent with an additive random utility model interpretation. A currency bloc equilibrium in the spirit of Alesina and Barro (2002) is derived empirically.
Subjects: 
anchor currency choice
nested logit
exchange rate regime classification
additive random utility model
currency bloc equilibrium
JEL: 
F02
F31
F33
E42
C25
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-755-9
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.