Economics and Business Review

The main objective of the paper is to verify the vanishing interim regime hypothesis
(so-called bipolar view) and to analyse factors that may influence the probability
of use of intermediate exchange rate regimes, especially in emerging and developing
economies. In order to accomplish the research objectives the evolution of exchange
rate regimes is presented with the special consideration of decisions of IMF member
states in this respect. Next a logistic regression model that estimates the probability of
use of an intermediate regime is applied. The results achieved allow a challenge to the
vanishing interim regime hypothesis. Empirical observations support this hypothesis
only in advanced countries and not in their emerging and developing peers.