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Exchange-Rate Regimes in Slovakia and the New EU Member States (in Slovak)

Author

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  • Jarko Fidrmuc

    (Ludwig-Maximillians-University Munich; Comenius University Bratislava, Faculty of Mathematics Physics and Informatics, Department of Applied Mathematics and Applied Statistics)

  • Matúš Senaj

    (Ministry of Labor, Social Affairs and Family of the Slovak Republic; Comenius University Bratislava, Faculty of Mathematics Physics and Informatics)

Abstract

Using a large data set for 167 developed countries and emerging and transition economies, the authors estimate probability models (probit and ordered probit) based on available de jure and de facto classifications for 1970–1995 and 1995–1999. They show that economic openness, trade concentration, and national deficit increase the probability of fixed exchange rates. In contrast, large countries are more likely to choose floating exchange rates then small ones. Financial crisis also increases the probability of more flexible regimes. Finally, the authors present probabilities of adoption of various exchange-rate regimes for selected countries. The results confirm the preference for more rigid exchange-rate regimes (e.g. monetary union) by small EU economies, including the ten new EU member states.

Suggested Citation

  • Jarko Fidrmuc & Matúš Senaj, 2006. "Exchange-Rate Regimes in Slovakia and the New EU Member States (in Slovak)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 56(1-2), pages 40-57, January.
    • Handle: RePEc:fau:fauart:v:56:y:2006:i:1-2:p:40-57
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    References listed on IDEAS

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    Cited by:

    1. Katarína Danišková & Jarko Fidrmuc, 2011. "Inflation Convergence and the New Keynesian Phillips Curve in the Czech Republic," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 5(2), pages 099-115, August.

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    More about this item

    Keywords

    economic and monetary union; exchange-rate regimes; ordered probit;
    All these keywords.

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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