1. Long-Run Determinants of Exchange Rate Regimes: A Sample Sensitivity Analysis Stanley Fischer Class: International Finance & Open Macroeconomy Dr. Nayef N. Al-shammari Date 14 th May, 2012 Presented by Mahdi Akbar

2. Result Based on IMF end-2000 classification of regimes. We find several instances in which the means of possible determinants are significantly different across group of countries at 5 % level significant Large countries, countries with low share of trade, countries with high inflation, politically stable countries, transition countries are all more likely to float than to have hard pegs or intermediate regimes. Countries with low capital controls are more likely to have hard pegs than intermediate or floating regimes. However, most of these relation are no longer significant when controlling for other variables in context of regression analysis

3. Result

4. Table 3 show the correlation matrix for the potential determinants of exchange rate regimes. There are many potential determinant are correlated with each other However, there don’t seem to be obvious signs that multicollinearity underlies the absence of significant and robust results

5. Questions