Exchange rate pass through, macro fundamentals and regime choice in Latin America

► This paper estimates exchange rate pass-through from 1970 to 2010 for Latin America. ► ERPT is declining for the last decade. ► Monetary policy stability, inflation rate, trade openness positively affect ERPT. ► Exchange rate regimes are captured by constructing de facto flexibility index. ► ERPT rates have a negative impact on exchange rate regimes.