This paper studies the Mexican and Israeli experience with a target zone. The first part of the paper develops a model of exchange rate determination under a target zone regime with stochastic realignments, and examines the conditions under which the adoption of the target zone, instead of a...

Several stabilization attempts in the 1980s in Argentina and Brazil followed a two-stage approach. In the first stage, some partial and temporary measures were taken to achieve a very drastic fall in the inflation rate. In the second stage, which sometimes never materialized, the fiscal reform...

Este trabajo desarrolla un modelo de determinacion del tipo de cambio donde la unica causa de las fluctuaciones es la expectativa de una realineacion. En este modelo se considera la banda cambiaria optima como la que minimiza una combinacion lineal de la varianza asintotica de las desviaciones...

How has Latin America coped with external shocks and economic vulnerabilities in the aftermath of the global financial crisis? Managing Economic Volatility in Latin America looks at how the region has fared in recent years in an environment of uncertainty. It presents a collection of novel...

How has Latin America coped with external shocks and economic vulnerabilities in the aftermath of the global financial crisis? Managing Economic Volatility in Latin America looks at how the region has fared in recent years in an environment of uncertainty. It presents a collection of novel...