Currency mismatch, openness and exchange rate regime choice
نویسندگان
چکیده
منابع مشابه
Informed Speculation and the Choice of Exchange Rate Regime
This paper explores the classic question regarding the costs and bene ̄ts of limiting exchange rate volatility starting from the premise that asset markets play an important role in aggregating information. I ̄nd that government trading, despite being completely observed, alters the ability of an asset market to reveal information. The main insight of the paper is that managing the exchange rate...
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1The sequence within intermediate regimes is somewhat arbitrary. For example, if the band is as narrow as 2 4 % as in the European Exchange Rate Mechanism or even 1% as under Bretton Woods, then it would properly belong closer to the fixed-rate end of the spectrum. Similarly, if the adjustable peg involved a devaluation or revaluation every time a moderate shock came along, it would properly be...
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ژورنال
عنوان ژورنال: Journal of Macroeconomics
سال: 2010
ISSN: 0164-0704
DOI: 10.1016/j.jmacro.2009.08.003