The intervention policy of the Swedish central bank is studied using daily intervention data for the late 1980s. In contrast to the first generation of target zone models, the authors find that the interventions occur all over the exchange rate band and almost every day. Based on this evidence,...

Devaluation expectations for the Swedish krona are estimated for the period 1982-1991 with several methods. First the "simplest test" is applied under either only the minimal assumption of "no positive minimum profit" or the additional assumption of uncovered interest parity. Then a more precise...