On the Sustainability of Exchange Rate Target Zones with Central Parity Realignments*
| Title: | On the Sustainability of Exchange Rate Target Zones with Central Parity Realignments* |
|---|---|
| Authors: | Enrique Martínez-garcía; Jel Codes E |
| Contributors: | The Pennsylvania State University CiteSeerX Archives |
| Source: | http://www.dallasfed.org/assets/documents/institute/wpapers/2015/0243.pdf. |
| Publication Year: | 2015 |
| Collection: | CiteSeerX |
| Description: | I show that parity realignments alone do not suffice to ensure the long-run sustainability of an exchange rate target zone with imperfect credibility due to the gambler’s ruin problem. However, low credibility and frequent realignments can destabilize the exchange rate. |
| Document Type: | text |
| File Description: | application/pdf |
| Language: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.698.3269; http://www.dallasfed.org/assets/documents/institute/wpapers/2015/0243.pdf |
| Availability: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.698.3269; http://www.dallasfed.org/assets/documents/institute/wpapers/2015/0243.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: | edsbas.2E57427D |
| Database: | BASE |