Target Zones and Interest Rate Variability /
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 zones. The interest rate differential's asymptotic (unconditional) variability is increasing in the exchange rate band for narrow bands;...
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| Format: | Book |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
1990
Washington, D.C. : International Monetary Fund 1990 [Place of publication not identified] 1990 |
| Series: | IMF Working Papers ;
Working Paper No. 90/31 IMF Working Papers; Working Paper ; no. 90/31 IMF eLibrary |
| Subjects: |