10 Questions
What is the main difference between the IMF de jure classification and the de facto classification mentioned in the text?
IMF de jure classification is based on actual policies, while de facto classification is based on announced regimes.
What term is used in the text to describe regimes that have an explicit commitment to a fixed regime but shy away from it?
Hidden pegs
What type of countries does the hollowing out hypothesis not apply to?
Countries with limited access to capital markets
What is associated with only relatively minor nominal exchange rate volatility according to the text?
Pure floats
What phenomenon has been observed in conjunction with the recent increase in the number of de jure floats?
Increase in the number of de facto dirty floats
What term is used to describe exchange rate regimes that have an explicit commitment to a fixed regime but shy away from it?
Hidden pegs
What has been observed in conjunction with the recent increase in the number of de jure floats, according to the text?
An increase in the number of de facto dirty floats
What is the main difference between the IMF de jure classification and the de facto classification mentioned in the text?
The de facto classification is based on data on exchange rates and international reserves, while the IMF de jure classification is based on the regime announced by governments.
To which type of countries does the 'hollowing out hypothesis' not apply?
Countries with limited access to capital markets
What, according to the text, is associated with only relatively minor nominal exchange rate volatility?
Pure floats
Learn about the classification of exchange rate regimes based on de jure and de facto criteria. Understand the challenges of using the IMF de jure classification and the construction of a de facto classification using data on exchange rates and international reserves.
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