An analytical approximation of target zone exchange rate functions: The technique of collocation

Economics Letters

Volumn 57, Issue 3, 1997, Pages 339-343

  Kempa, Bernd ^a   Nelles, Michael ^a   Pierdzioch, Christian ^b  

^a UNIVERSITY OF DUISBURG ESSEN   (Germany)

^b KIEL INSTITUTE FOR THE WORLD ECONOMY   (Germany)

Author keywords

Collocation; Exchange rate target zones; Sticky prices

Indexed keywords

EID: 0031578596     PISSN: 01651765     EISSN: None     Source Type: Journal    
DOI: 10.1016/s0165-1765(97)00236-x     Document Type: Article

References (6)

1. Collatz, L., 1966. Numerical treatment of differential equations, 3rd ed. Berlin.
2. Krugman, P., 1991. Target zones and exchange rate dynamics. Quarterly Journal of Economics 106, 669-682.
3. Miller, M., Weller, P., 1989. Solving stochastic saddlepoint systems: a qualitative treatment with economic applications. CEPR Discussion Paper, No. 308.
4. Miller, M., Weller, P., 1991. Exchange rate bands with price inertia. Economic Journal 101, 1380-1399.
5. Sutherland, A., 1994. Target zone models with price inertia: solutions and testable implications. Economic Journal 104, 96-112.
6. Zwillinger, D., 1989. Handbook of differential equations, San Diego.