Beneš, Jaromír; Hurník, Jaromír; Vávra, David - In: Czech Journal of Economics and Finance (Finance a uver) 58 (2008) 03-04, pp. 166-194
This paper introduces a strategy for modeling the exchange rate when the monetary authority targets inflation while also managing the exchange rate using interventions. It does so in the framework of a standard reduced-form New Keynesian model of monetary transmission used in many institutions...