Target zones in History and Theory : efficiency, credibility and policy autonomy

A natural experiment with an exchange-rate band in Austria-Hungary in the early 20th century provides a rare opportunity to discuss critical aspects of the theory of target zones. Providing a new derivation of the target zone model as a set of nested hypotheses, the inference is drawn that policy credibility and market efficiency were paramount in the success of the Austro-Hungarian experience.

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Year of publication:	2005-08
Authors:	Flandreau, Marc ; Komlos, John
Institutions:	Sciences économiques, Sciences Po
Subject:	target zone \| market efficiency \| monetary policy \| covered interest parity

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Extent:	application/pdf
Series:	Sciences Po publications.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series CEPR Discussion paper Number n°5199
Classification:	F31 - Foreign Exchange ; N32 - U.S.; Canada: 1913-
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011003485