On the Sustainability of Exchange Rate Target Zones with Central Parity Realignments

I show that parity realignments alone do not suffice to ensure the long-run sustainability of an exchange rate target zone with imperfect credibility due to the gambler's ruin problem. However, low credibility and frequent realignments can destabilize the exchange rate

MoreLess

Year of publication:	2017
Authors:	Martínez-García, Enrique
Publisher:	[2017]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Wechselkurspolitik \| Exchange rate policy \| Wechselkurs \| Exchange rate

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	1 Online-Ressource (17 p)
Series:	Globalization and Monetary Policy Institute Working Paper ; No. 243
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments 2015-06-01 erstellt
Classification:	E58 - Central Banks and Their Policies ; F31 - Foreign Exchange ; F33 - International Monetary Arrangements and Institutions ; F41 - Open Economy Macroeconomics ; G15 - International Financial Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012971235