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

This paper studies the implications of the imperfect credibility of an exchange rate target zone on the term structure of forward premia. The relationship betwe

Inhaltsangabe:Zusammenfassung: Währungskrisen, wie die des Europäischen Währungssystems (EWS) 1992, können noch immer nur unzureichend vorausgesagt werden.

Why do currency crises happen? What conditions set the stage for such a crisis? How severe will it be? When will it happen? This book answers these questions, i