BELESSAKOS, Elias; LOUFIR, Rahim - In: Annales d'Economie et de Statistique (1993) 31, pp. 33-50
We present a monetary model of unilateral exchange rate target zone based on microeconomic optimization principles. We endogenously derive the consumer's consumption and protfolio choices, and the demand for money balances. The standard monetary model results, like the S-shaped solution for the...