Garber, Peter M.; Svensson, Lars E.O. - National Bureau of Economic Research (NBER) - 1994
rates. The influential Krugman model of exchange rate target zones has two main results, namely that credible target zones … target zones. The speculative attack literature has developed models built on the principles of no anticipated price … discontinuities, endogenous timing of the speculative attack, and the attack occurring when a finite amount of foreign exchange …