The Performance of Alternative Exchange Rate Regimes and their Countries' Condition: Matching Analysis and Selection Model Building

There is much discussion on the performance and selection of exchange rate regimes, and it is still in controversy. For the failure in the works, we collect more data including recent years and removing the periods of the currency crisis, then analyze the matching relationship between the exchange rate regimes and the condition of countries in the exhaustive CHAID decision tree, and build the exchange rate regime selection model in the exhaustive prune neural network. The conclusion shows the good performance of exchange rate regimes need different condition of countries to match, especially the integrate effect of condition factors is more important, then we build the exchange rate regime selection model in the exhaustive prune neural network, and the comparison and robust testing shows it is effective.