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    The scope for monetary independence in exchange rate target zones broad and narrow


    Hurley, Margaret J. (1998) The scope for monetary independence in exchange rate target zones broad and narrow. Economics Letters, 59. pp. 97-105. ISSN 0165-1765

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    Abstract

    Placing limits on the movement of economic fundamentals in order to maintain an exchange rate within a target zone also puts a target zone around interest rate differentials. The bandwidth of exchange rate and interest rate differentials target zones will be different except at one point; it is suggested that this point gives a useful partitioning of target zones into broad and narrow categories. For realistic parameter values, this occurs at an exchange rate target zone of plus or minus 3.2%.

    Item Type: Article
    Keywords: Exchange rates; Target zones; Bandwidths; Monetary independence; Exchange rate mechanism bandwidths; Economics; target zones; exchange rate mechanism; exchange rates; monetary independence;
    Academic Unit: Faculty of Social Sciences > Economics, Finance and Accounting
    Item ID: 11414
    Identification Number: https://doi.org/10.1016/S0165-1765(98)00007-X
    Depositing User: Margaret Hurley
    Date Deposited: 24 Oct 2019 15:33
    Journal or Publication Title: Economics Letters
    Publisher: Elsevier
    Refereed: Yes
    URI:

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