Crawling Bands or Monitoring Bands: How to Manage Exchange Rates in a World of Capital Mobility
If the foreign exchange market behaved as it is assumed to do in economics textbooks, with ubiquitous rational expectations the driving force, it is indeed difficult to imagine why anyone would not want to allow the exchange rate to float (at least for countries that do not satisfy the conditions to be part of an optimum currency area). Since most economists like to assume that their models do indeed describe the real world, to some reasonable approximation, it is not difficult to understand the appeal of floating to the profession.
|Date of creation:||Feb 1999|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.piie.com
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:iie:pbrief:pb99-03. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peterson Institute webmaster)
If references are entirely missing, you can add them using this form.