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The Duration of Intermediate Exchange Rate Regimes and Capital Controls

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Abstract
We perform a survival analysis of the policy composed of an intermediate exchange rate regime and a closed financial account. The analysis proposed is novel because we overcome the potential endogeneity between the two policies by analyzing the duration of the policy mix, estimate a multiple destinations model and control for unobserved heterogeneity. The deepness of the financial system, inflation, per capita income, size, trade openness, and the global acceptance of intermediate regimes and capital controls affect the duration of the policy mix. Finally, the evidence shows that the single destination model hides interesting factors affecting the duration of the regime.

Suggested Citation

  • Raul Razo-Garcia, 2011. "The Duration of Intermediate Exchange Rate Regimes and Capital Controls," Carleton Economic Papers 11-01, Carleton University, Department of Economics, revised 17 Oct 2011.
    • Handle: RePEc:car:carecp:11-01
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Karimi & Marcel‐Cristian Voia, 2019. "Empirics of currency crises: A duration analysis approach," Review of Financial Economics, John Wiley & Sons, vol. 37(3), pages 428-449, July.

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    More about this item

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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