The choice of exchange rate bands: balancing credibility and flexibility

• 成果类型: Article
• 署名作者: Cukierman, A; Spiegel, Y; Leiderman, L
• 署名单位: Tel Aviv University; Tilburg University; Tel Aviv University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(03)00046-1
• 发表日期: 2004
• 页码: 379-408
• 关键词: exchange rate bands; pegs; floats; Partial commitment; credibility; reputation; flexibility

摘要

This paper develops a framework for the optimal choice of exchange rate bands within an environment in which policymakers dislike nominal exchange rate variability, but value the flexibility to adjust the nominal exchange rate in response to shocks, in order to attain real exchange rate objectives. The paper provides an endogenous characterization of the optimal exchange rate band in terms of the underlying distribution of shocks to the current and capital accounts of the balance of payments and in terms of the commitment reputation of policymakers. (C) 2003 Elsevier B.V. All rights reserved.