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This paper investigates empirically the reasons behind the popularity of fixed adjustable pegs in the Middle East North Africa region (MENA). We have used an ordered multinomial random effects probit model for explaining the nature of exchange rate regime according to the official (de jure) and to the actual (de facto) exchange rate classifications. Many dicators have been used as proxies for the different relevant factors. We find that the “fear of floating” factors appear to play a significant role in the choice of regime

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  • Claude Bismut
  • Darine Ghanem

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  • Claude Bismut & Darine Ghanem, 2009. "This paper investigates empirically the reasons behind the popularity of fixed adjustable pegs in the Middle East North Africa region (MENA). We have used an ordered multinomial random effects probit ," Working Papers 09-10, LAMETA, Universtiy of Montpellier, revised Sep 2009.
    • Handle: RePEc:lam:wpaper:09-10
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