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    The Optimum Level of Reserves in an Exchange Rate Target Zone


    Hurley, Margaret J. and McCormack, Pat and O'Brien, Stuart (1993) The Optimum Level of Reserves in an Exchange Rate Target Zone. Economic and Social Review, 25 (1). pp. 95-107. ISSN 0012-9984

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    Abstract

    The target zone exchange rate literature, initiated by Krugman (1991), has relevance for the question of what is the optimal level of reserves. In particular, Krugman and Rotemberg (1990) show that there is a well defined boundary between a target zone that is subject to speculative attack and one which is sustainable. This boundary is defined by whether reserves are sufficient or not. This paper reviews briefly both the target zone and speculative attack literature. The appropriate level of reserves for Ireland is then calculated and discussed.

    Item Type: Article
    Keywords: Economics, Examples; Sociology; Rate Dynamics; Rate Regimes; Ireland
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 11413
    Depositing User: Margaret Hurley
    Date Deposited: 24 Oct 2019 15:30
    Journal or Publication Title: Economic and Social Review
    Publisher: ESRI
    Refereed: Yes
    URI:

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