Corrado, L.; Miller, Marcus; Zhang, Lei - Faculty of Economics, University of Cambridge - 2002
policy-induced. John Williamson (1998), for example, has proposed a “monitoring band” in which there is no intervention near … equilibrium but there is substantial intervention triggered by exchange rate deviations outside a preset band. In this paper we … develop a theoretical model of such a monitoring band to see whether it can generate patterns of nonlinear mean-reversion akin …