Choice of exchange rate regime and currency zones

We investigate the choice of exchange rate regimes in different currency zones (the US dollar, Euro and the CFA zones), and geographic regions (Latin America and Caribbean, East Asia and Pacific, Europe, core Europe, and the CFA countries). We control for country and regional heterogeneity, time dummies, endogeneity and perform various robustness checks. Results from regional analysis substantially differ from the aggregate analysis despite controlling for random effects. Even at the regional level controlling for currency zones affects our findings. Regional results are generally robust to regime measurement, and sample changes (number of observations).