Stabilization policy, fixed exchange rates and target zones.
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Stabilization policy, fixed exchange rates and target zones.

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Published by Centre for Economic Policy Research in London .
Written in English


Book details:

Edition Notes

SeriesDiscussion paper series / Centre for Economic Policy Research -- no.304
ContributionsCentre for Economic Policy Research.
ID Numbers
Open LibraryOL13923569M

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To Fix or to Float: Pros and Cons for the Different Regimes. Book. Tony Latter; This Handbook examines the role of the exchange rate in monetary policy and the factors which may determine the Author: Marjan Petreski. The Exchange Stabilization Fund (ESF) is an emergency reserve account that can be used by the U.S. Department of Treasury to mitigate instability in various financial sectors, including credit. EXCHANGE RATE DETERMINATION Target zones are created to stabilize exchange rates. It is necessary to understand exchange rates and the market forces that determine them to understand the forces behind realignments of target zones. To give the reader an idea of what an exchange rate within a target zone looks like. Fixed Exchange Rates and Target Zones To introduce our study of exchange-rate regimes, we’ll start by studying fixed exchange rates, and asking some questions about this regime for monetary policy.

Exchange Rate Regimes and Monetary Policy in Small Open Economies. the relationship between exchange rate regimes and monetary policy rules. Policy, Fixed Exchange Rates and Target Zones. Book, Internet Resource: interdependence and deflation in Britain and the United States between the wars / Stephen N. Broadberry --stabilization policy, fixed exchange rates and target zones / George S. Alogoskoufis --Commodity price indicators / Alison Hook and David Walton stabilization policy, fixed exchange rates and target. Target Zones and Exchange Rate Dynamics Paul R. Krugman. NBER Working Paper No. Issued in NBER Program(s):International Trade and Investment Program, International Finance and Macroeconomics Program This paper develops a highly simplified model of exchange rate behavior within the band under a target zone regime. Stabilization policy is a strategy enacted by a government or its central bank that is aimed at maintaining a healthy level of economic growth and minimal price changes. Sustaining a stabilization.

SOME PROBLEMS OF STABILIZATION POLICY UNDER FLOATING EXCHANGE RATES M. June Flanders Tel-Aviv University I. Introduction The theory of internal-external balance, or the assignment problem as related to macroeconomic policy in an open economy, has two lemoisduvinnaturel.com: M. June Flanders. Exchange Rate Target Zones Abstract A target zone attempts to limit the movement of an exchange rate, avoiding the pitfalls of both a pegged rate and a freely floating rate. The European Monetary System was the prime example. An elegant model of Paul Krugman demonstrates that in theory a target zone does indeed stabilise an exchange rate. Target Zones and Exchange Rates: An Empirical Investigation Geert Bekaert, Stephen F. Gray. NBER Working Paper No. (Also Reprint No. r) Issued in January NBER Program(s):Asset Pricing Program, International Finance and Macroeconomics Program. In this paper we develop an empirical model of exchange rates in a target zone. This paper investigates the ability of policymakers to achieve stabilization targets in the face of spillover effects from abroad. In the context of a two-country Keynesian model, each country's stabilization policy turns out to have a comparative advantage over domestic economic activity under Cited by: 1.