English   español  
Please use this identifier to cite or link to this item: http://hdl.handle.net/10261/58472
logo share SHARE logo core CORE   Add this article to your Mendeley library MendeleyBASE

Visualizar otros formatos: MARC | Dublin Core | RDF | ORE | MODS | METS | DIDL
Exportar a otros formatos:


The optimal degree of exchange rate flexibility: A target zone approach

AuthorsRodríguez-López, Jesús; Rodríguez Mendizábal, Hugo
Issue Date2007
PublisherBlackwell Publishing
CitationReview of International Economics 15(4): 803-822 (2007)
AbstractThis paper presents a benchmark model that rationalizes the choice of the degree of exchange rate flexibility. We show that the monetary authority may gain efficiency by reducing volatility of both the exchange rate and the interest rate at the same time. Furthermore, the model is consistent with some known stylized facts in the empirical literature on target zones that previous models were not able to generate jointly - namely, the positive relation between the exchange rate and the interest rate differential, the degree of nonlinearity of the function linking the exchange rate to fundamentals, and the shape of the exchange rate stochastic distribution. © 2007 The Authors; Journal compilation © 2007 Blackwell Publishing Ltd.
Identifiersdoi: 10.1111/j.1467-9396.2007.00698.x
issn: 0965-7576
e-issn: 1467-9396
Appears in Collections:(IAE) Artículos
Files in This Item:
File Description SizeFormat 
The Optimal Degree.pdf564,09 kBAdobe PDFThumbnail
Show full item record
Review this work

Related articles:

WARNING: Items in Digital.CSIC are protected by copyright, with all rights reserved, unless otherwise indicated.