Iannizzotto, Matteo; Taylor, Mark P - In: Economic Journal 109 (1999) 454, pp. 96-110
The authors estimate a target zone model for three ERM exchange rates for 1983-86 and 1987-91 by the method of simulated moments, taking account of the continuous time specification by using daily data with the interruptions of holidays and weekends. Specification tests are unable to reject the...