Targeting the Exchange Rate : Empirical Investigation.

The purpose of this paper is to implement empirically the new theory of exchange rate targeting. The theory formulates an expectations induced relationship between the exchange rate and the fundamental subject to random shocks and target zone constraints. By using monthly data for a representative s...

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Dades bibliogràfiques
Autor corporatiu: International Monetary Fund
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1990.
Col·lecció:IMF Working Papers; Working Paper ; No. 1990/061
Accés en línia:Full text available on IMF
Descripció
Sumari:The purpose of this paper is to implement empirically the new theory of exchange rate targeting. The theory formulates an expectations induced relationship between the exchange rate and the fundamental subject to random shocks and target zone constraints. By using monthly data for a representative small-open economy (Israel in the 1980s) the empirical analysis identifies the special roled played by policy and market fundamentals in the behavior of the exchange rate.
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Descripció física:1 online resource (34 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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