This paper studies the Mexican and Israeli experience with a target zone. The first part of the paper develops a model of exchange rate determination under a ta

The trade-off between interest rate variability and the width of an exchange rate target zone is examined, using the regulated Brownian motion model of target z

Handbook of International Economics

The purpose of this paper is to implement empirically the new theory of exchange rate targeting. The theory formulates an expectations induced relationship betw

This volume examines the intersection between a new analytical approach and a real economic problem.