An Interpretation of Recent Research on Exchange Rate Target Zones

Dados Bibliográficos

ID4786014
AutoresLars E O Svensson (0000-0001-6492-1966, Professor of International Economics, Institute for International Economic Studies, Stockholm University, Stockholm, Sweden., autor correspondente)
Ano1992
Volume6
Fascículo4
Páginas119-144
Data de publicação1992-11-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoThe Journal of Economic Perspectives (JOURNAL)
Identificadores do periódicoISSN: 0895-3309 • E-ISSN: 1944-7965
EditoraAmerican Economic Association (PUBLISHER • US)
DOI10.1257/jep.6.4.119
OpenAlexW1971867094
IdiomaEN
Citações recebidas11
Referências citadas13

How do exchange rate bands work compared to completely fixed rates (between realignments); or, more precisely, what are the dynamics of exchange rates, interest rates, and central bank interventions within exchange rate bands? Does the difference between bands and completely fixed exchange rates matter, and if so, which of the two arrangements is best; or, more precisely, what are the tradeoffs that determine the optimal bandwidth? This article will present an interpretation of some selected recent theoretical and empirical research on exchange rate target zones, with emphasis on main ideas and results and without technical detail

Economics · Exchange rate · Fixed exchange rates · Macroeconomics · Physics · Thermodynamics · Computer Science · Economic Theory and Policy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact