Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/47888
Authors: 
Fischer, Christoph
Year of Publication: 
2011
Series/Report no.: 
Discussion Paper Series 1: Economic Studies 2011,12
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
ISBN: 
978-3-86558-717-6
Document Type: 
Working Paper

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