Realignment Expectations, Forward Rate Bias, and Sterilized Intervention in an Adjustable Peg Exchange Rate Model with Policy Optimization /
The paper models an adjustable peg exchange rate arrangement as a policy rule with an escape clause under which the timing and magnitudes of realignments are the outcomes of policy optimization decisions. Under the assumptions that market participants are rational, risk averse, and fully informed ab...
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| Format: | Journal |
| Language: | English |
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Washington, D.C. :
International Monetary Fund,
1994.
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| Series: | IMF Working Papers; Working Paper ;
No. 1994/020 |
| Online Access: | Full text available on IMF |