WHY EXCHANGE-RATE BANDS - MONETARY INDEPENDENCE IN SPITE OF FIXED EXCHANGE-RATES

• 成果类型: Article
• 署名作者: SVENSSON, LEO
• 署名单位: National Bureau of Economic Research; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• 发表日期: 1994
• 页码: 157-199
• 关键词: TARGET ZONES; Interest rates; monetary policy

摘要

The paper argues that the reason real world fixed exchange rate regimes usually have finite bands, instead of completely fixed exchange rates between realignments, is that exchange rate bands, counter to the textbook result, give central banks some monetary independence, even with free international capital mobility. The nature and amount of monetary independence is specified, informally and in a formal model, and quantified with Swedish krona data. Altogether the amount of monetary independence appears sizable. For instance, an increase in the Swedish krona band from zero to about +/- 2 percent may reduce the krona interest rate's standard deviation by about a half.