Target Zones and Realignments

Recent contribution emphasize that the presence of exchange rate target zones has important effects on the within-band behaviour of exchange rates. We show that the implications of available models are strikingly inconsistent with European Monetary System data, and we propose a model of recurring realignments the predictions of which are consistent with the evidence.

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Year of publication:	1990-03
Authors:	Bertola, Giuseppe ; Caballero, Ricardo
Institutions:	C.E.P.R. Discussion Papers
Subject:	EMS \| Exchange Rates Volatility \| Expected Depreciation \| Interventions

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 398
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005792134