Soft exchange rate bands and speculative attacks : theory, and evidence from the ERM since August 1993 /

We present a model of a "soft" exchange rate target zone and interpret it as a stylized description of the post-August 1993 ERM. Our central bank targets a moving average of the current and past exchange rates rather than the exchange rate's current level, thus allowing the rate to mo...

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Bibliographic Details
Main Author: Bartolini, Leonardo
Other Authors: Prati, Alessandro
Format: eBook
Language:English
Published: New York, N.Y. : Federal Reserve Bank of New York, 1998
Subjects:
Online Access:https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr43.pdf