Funke, Michael; Chen, Yu-Fu; Glanemann, Nicole - Institut für Makroökonomie und Wirtschaftspolitik, … - 2010
This paper provides a modelling framework for evaluating the exchange rate dyna-mics of a target zone regime with undisclosed bands. We generalize the literature to allow for asymmetric one-sided regimes. Market participants' beliefs concerning an undisclosed band change as they learn more about...