Pegs, Floats, and Forests: A Machine Learning Revisit of Exchange Rate Regimes and Growth in Transition Economies (opens in new tab)

This paper combines traditional panel econometrics with random forest machine learning to revisit the relationship between exchange rate regimes and economic growth for 27 transition economies over 1991-2019. Exploiting the Couharde-Grekou (2024) probabilistic synthesis classification, the random forest approach non-parametrically confirms and sharpens what fixed-effects and system GMM estimation establish parametrically intermediate exchange ra...