posted on 2012-07-01, 00:00authored byMohammad Tarequl Hasan Chowdhury
This thesis establishes that exchange rate regime choice is persistent for low-income and high-income countries. It also confirms the crucial role of capital account openness, financial development and product diversification as possible determinants of regime choice. Moreover, the thesis provides strong evidence that exchange rate regime influences fiscal discipline directly and through interaction with trade openness.