Limited reserves and the optimal width of an exchange rate target zone

Open Economies Review

Volumn 16, Issue 3, 2005, Pages 263-281

  Broome, Simon ^a  

^a NATIONAL UNIVERSITY OF IRELAND   (Ireland)

Author keywords

Exchange rate crises; Optimal target zones; Stabilisation policy

Indexed keywords

EXCHANGE RATE; MONETARY POLICY; TARGETING;

EID: 21644478364     PISSN: 09237992     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11079-005-1025-z     Document Type: Article

References (14)

1. Beetsma, R.M.W.J. and F. van der Ploeg (1998) "Macroeconomic Stabilisation and Intervention Policy under an Exchange Rate Band." Journal of International Money and Finance 17:339-353.
2. Broome, S.J. (2001) "The Lifetime of a Unilateral Target Zone: Some Extended Results." Journal of International Money and Finance 20:419-438.
3. D.R. Cox H.D. Miller 1965 The Theory of Stochastic Processes Chapman and Hall London
4. Dumas, B. and L.E.O. Svensson (1994) "How Long Do Unilateral Target Zones Last?" Journal of International Economics 36:467-481.
5. I. Karatzas S.E. Shreve 1998 Brownian Motion and Stochastic Calculus Springer Verlag New York
6. Klein, M.W. (1990) "Playing with the Band: Dynamic Effects of Target Zones in an Open Economy." International Economic Review 31:757-772.
7. Klein, M.W. and N.P. Marion (1997) "Explaining the Duration of Exchange Rate Pegs." Journal of Development Economics 54:387-404.
8. Krugman, P. (1991) "Target Zones and Exchange Rate Dynamics." Quarterly Journal of Economics 106:669-682.
9. Krugman, P. (1979) "Model of Balance of Payments Crises." Journal of Money, Credit and Banking 11:311-325.
10. Krugman, P. and M. Miller (1993) "Why Have a Target Zone?" Carnegie-Rochester Series on Public Policy 35:67-78.
11. Lucas, R.E. Jr. (1972) "Expectations and the Neutrality of Money." Journal of Economic Theory 4:103-124.
12. Miller, M. and P Weller (1991) "Exchange Rate Bands with Price Inertia." Economic Journal 101:1380-1399.
13. Poole, W. (1970) "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model." Quarterly Journal of Economics 84:197-216.
14. Sutherland, A. (1995) "Monetary and Real Shocks and the Optimal Target Zone." European Economic Review 39:161-172.