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Entering An Preannounced Currency Band

Author

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  • ICHIKAWA, M.
  • MILLER, M.
  • SUTHERLAND, A.

Abstract

Krugman (1988) provides a stationary characterisation of an exchange rate inside a currency band. Here we derive the non-stationary solution for a floating exchange rate which applies when currency dealers expect such a band to be imposed at a known future date.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ichikawa, M. & Miller, M. & Sutherland, A., 1990. "Entering An Preannounced Currency Band," The Warwick Economics Research Paper Series (TWERPS) 347, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:347
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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/1989-1994/twerp347.pdf
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    References listed on IDEAS

    as
    1. Smith, Gregor W & Smith, R Todd, 1990. "Stochastic Process Switching and the Return to Gold, 1925," Economic Journal, Royal Economic Society, vol. 100(399), pages 164-175, March.
    2. Froot, Kenneth A. & Obstfeld, Maurice, 1991. "Exchange-rate dynamics under stochastic regime shifts : A unified approach," Journal of International Economics, Elsevier, vol. 31(3-4), pages 203-229, November.
    3. Paul R. Krugman, 1988. "Target Zones and Exchange Rate Dynamics," NBER Working Papers 2481, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Ikeda, Shinsuke & Shibata, Akihisa, 1995. "Fundamentals uncertainty, bubbles, and exchange rate dynamics," Journal of International Economics, Elsevier, vol. 38(3-4), pages 199-222, May.

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