Exchange Rate Regime Transitions »
Journal Issue
Volume/Issue: 2000/134
Series: IMF Working Papers
Author(s): Paul Masson
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2000
DOI: http://dx.doi.org/10.5089/9781451855593.001
ISBN: 9781451855593
Keywords: exchange rates, regimes, pegs, floating, exchange rate, probability, probabilities
The “hollowing-out,” or “two poles” hypothesis is tested in the context of a Markov chain model of exchange rate transitions. In particular, two versions of the hypothesis—that ha...