Exchange rate dynamics in crawling-band systems

Jose Torres () and M. Isabel Campos ()
Additional contact information
M. Isabel Campos: Universidad de Valladolid

Economics Bulletin, 2007, vol. 6, issue 11, 1-10

Abstract: In this note we show that an exchange rate crawling-band system can borrow a portion of those aspects of a target zone that lead to its stabilizing effects on the exchange rate, depending on the relationship between the crawl rate and the drift of the fundamentals process. If the crawl rate is sufficiently high (with respect to the drift), the crawling-band is similar to a free float regime. As the crawl rate decreases, the crawling-band system collapses to a standard target zone.

Keywords: crawling; band (search for similar items in EconPapers)
JEL-codes: F3 (search for similar items in EconPapers)
Date: 2007-03-30
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/pubs/EB/2007/Volume6/EB-06F30014A.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-06f30014

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().