currency boards' effectiveness hinges on their credibility properties and that they can improve welfare even with high …

This paper analyzes the linkages between the credibility of a target zone regime, the volatility of the exchange rate … the band width induces a trade-off between credibility and volatility. Narrower bands should give less scope for the …

This paper provides empirical evidence on the determinants of exchange rate credibility under the European Monetary … international reserves, the real interest rate and right-wing governments would have positively affected the credibility of a given … central parity, while the unemployment rate and the inflation rate would have negative influenced such credibility. …

theoretical frameworks. We also address the question of the credibility of the authorities` commitment to the standard, through …

policy-maker's credibility as opposed to the open loop precommitment strategy that has been implemented, for instance, in the … determined optimally given the policy-maker's credibility. A commitment to this form of flexible target zone is shown through …

In recent years the theory of rules and discretion in monetary policy has fascinated academic economists and policy … particular the classical gold standard. The paper first discusses the underpinnings, and some of the problems, of a theory of the …

This paper analyzes the linkages between the credibility of a target zone regime, the volatility of the exchange rate … the band width induces a trade-off between credibility and volatility. Narrower bands give less scope for the exchange …