Stabilization Policy with Bands /

This paper discusses stabilization policy in the presence of bands for the exchange rate. The bands are modelled in a probabilistic sense: monetary policy has to be such as to keep the probability, that the exchange rate stays within the bands, above a certain threshold. In contrast to other models...

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Detalles Bibliográficos
Autor Principal: Gros, Daniel
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 1990.
Series:IMF Working Papers; Working Paper ; No. 1990/049
Acceso en liña:Full text available on IMF
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245 1 0 |a Stabilization Policy with Bands /  |c Daniel Gros. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1990. 
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490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper discusses stabilization policy in the presence of bands for the exchange rate. The bands are modelled in a probabilistic sense: monetary policy has to be such as to keep the probability, that the exchange rate stays within the bands, above a certain threshold. In contrast to other models of target zones, this formulation leads to a linear decision rule and implies sizeable intra-marginal interventions, which corresponds to the experience in the EMS. The extent to which short-run monetary policy is constraint by the bands depends on its own long-run components and on fiscal policy. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1990/049 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1990/049/001.1990.issue-049-en.xml  |z IMF e-Library