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Exchange rate target zones a survey of the literature

HomeSchrubbe65313Exchange rate target zones a survey of the literature
01.03.2021

14 Jul 2005 exchange rates, it works fairly well with target zone rates such as those Effectiveness of Central-Bank Intervention: A Survey of the Literature. target are cited as some motivating factors for intervention (see Bonser-Neal, 1996;. Baillie and Osterberg, 1997 literature on the impact of intervention on the exchange rate. “Post-Louvre intervention: Did target zones stabilize the dollar? “The effectiveness of central bank intervention: A survey of literature after. 1982”. The survey reported that 89 percent of the trading involved the dollar on one side of the transaction or the other. The exchange rate between the Japanese yen and the U.S. dollar is usually pure fixing and pure floating (examples include bands or target zones, basket pegs, Journal of Economic Literature 33, no. 1 Dec 2019 Exchange rates can be understood as the price of one currency in terms of another currency. However, just like for goods and services, we  27 Oct 2011 This paper surveys a wide body of economic literature on the relationship between The Early Literature: Testing the Direct Effect of Exchange Rate Uncertainty. A. services was, then, the main target of attention. to see their impact on their bilateral trade with the United States, the euro-zone and China. This work selectively reviews the literature on exchange rate target zones and their theoretical and empirical methodologies and examines whether they can be used to clarify to what extent this type of exchange rate regime could contribute to greater exchange rate stability. Downloadable (with restrictions)! This work selectively reviews the literature on exchange rate target zones and their theoretical and empirical methodologies and examines whether they can be used to clarify to what extent this type of exchange rate regime could contribute to greater exchange rate stability. We discuss the main contributions of the first and second generations of exchange rate

Keywords: Exchange rates; Target zones; European Monetary System large theoretical literature on target zones which has had limited empirical success 9A previous version of this paper, Bekaert, Gray (1996), provides a survey of these 

Exchange Rate Target Zones: A Survey of the Literature A great deal of the literature on exchange rate target zones assumes that the fun- damentals driving the exchange rate fol low a random walk with drift, and the rate of drift and the variance of innovations in the fundamentals are constant over time (for a survey see e.g. Garber and Svensson (1995)). "Exchange Rate Target Zones: A Survey of the Literature," GEMF Working Papers 2010-14, GEMF, Faculty of Economics, University of Coimbra. Benigno, Gianluca & Benigno, Pierpaolo, 2008. " Exchange rate determination under interest rate rules ," Journal of International Money and Finance , Elsevier, vol. 27(6), pages 971-993, October. The theoretical target zone literature builds primarily on the stylized continuous- time model of Krugman (1991). The exchange rate, S t, is measured in domestic currency per unit of foreign currency and is in logs.

Therefore, this paper contributes to the target zone literature by first showing how the methodology in Chen and Giovannini (1992) can be adjusted to the case of a one-sided exchange rate target

1 Dec 2019 Exchange rates can be understood as the price of one currency in terms of another currency. However, just like for goods and services, we 

EXCHANGE RATE TARGET ZONES: A SURVEY OF THE LITERATURE In: Journal of Economic Surveys. [Citation analysis] article: 5: 2010: Exchange Rate Target Zones: A Survey of the Literature.(2010) In: GEMF Working Papers. [Citation analysis] This paper has another version. Agregated cites: 5

Target Zones and Exchange Rates: An Empirical Investigation. By Stephen Gray, Geert Bekaert. 1996 Working Paper No. 1369. In this paper we develop an empirical model of exchange rates in a target zone. The model is general enough to nest most theoretical and empirical models in the existing literature. We find evidence of two types of jumps in

When exchange-rate management takes the form of an exchange rate "target-zone," enforcement of the zone sets up expectations that alter the relationship between the exchange rate and its fundamental determinants. Such effects are the focus of a theoretical literature concerned with exchange rate "target-zones."

1 Dec 2019 Exchange rates can be understood as the price of one currency in terms of another currency. However, just like for goods and services, we