Soft exchange rate bands and speculative attacks : theory and evidence from the ERM since August 1993 /

Soft exchange rate bands and speculative attacks : theory and evidence from the ERM since August 1993 /

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Bibliographic Details
Author / Creator:	Bartolini, Leonardo.
Imprint:	[Washington, D.C.] : International Monetary Fund, Research Dept., ©1998.
Description:	1 online resource (29 pages) : illustrations
Language:	English
Series:	IMF working paper, 2227-8885 ; WP/98/156 IMF working paper ; WP/98/156.
Subject:	Foreign exchange rates -- Europe -- Econometric models. Devaluation of currency -- Europe -- Econometric models. Monetary policy -- Europe -- Econometric models. Devaluation of currency -- Econometric models. Foreign exchange rates -- Econometric models. Monetary policy -- Econometric models. Europe.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12497689

Hidden Bibliographic Details
Other authors / contributors:	Prati, Alessandro, 1961- International Monetary Fund. Research Department.
ISBN:	1451902522 9781451902525 1462384188 9781462384181 1452712875 9781452712871 1282110616 9781282110618 9786613803504 6613803502
Notes:	Includes bibliographical references (pages 28-29). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 English. digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	We present a model of a "soft" exchange rate target zone and interpret it as a stylized description of the post-August 1993 ERM. Our central bank targets a moving average of the current and past exchange rates, rather than the exchange rate's current level, thus allowing the rate to move within wide margins in the short run, but within narrow margins in the long run. For realistic parameters, soft target zones are significantly less vulnerable to speculative attacks than "hard" target zones. These predictions are consistent with the ERM's experience and the abatement of speculative pressure in European markets since the bands' widening in 1993
Other form:	Print version: Bartolini, Leonardo. Soft exchange rate bands and speculative attacks. [Washington, D.C.] : International Monetary Fund, Research Dept., ©1998
Standard no.:	10.5089/9781451902525.001

Description
Summary:	We present a model of a "soft" exchange rate target zone and interpret it as a stylized description of the post-August 1993 ERM. Our central bank targets a moving average of the current and past exchange rates, rather than the exchange rate's current level, thus allowing the rate to move within wide margins in the short run, but within narrow margins in the long run. For realistic parameters, soft target zones are significantly less vulnerable to speculative attacks than "hard" target zones. These predictions are consistent with the ERM's experience and the abatement of speculative pressure in European markets since the bands' widening in 1993.
Physical Description:	1 online resource (29 pages) : illustrations
Format:	Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Bibliography:	Includes bibliographical references (pages 28-29).
ISBN:	1451902522 9781451902525 1462384188 9781462384181 1452712875 9781452712871 1282110616 9781282110618 9786613803504 6613803502
ISSN:	2227-8885 ;