STATE-CONTINGENT AND TIME-CONTINGENT SWITCHES OF EXCHANGE-RATE REGIME

• 成果类型: Article
• 署名作者: SUTHERLAND, A
• 署名单位: Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(94)01355-V
• 发表日期: 1995
• 页码: 361-374
• 关键词: REGIME SWITCHES; Exchange rates; Stochastic processes

摘要

Recent papers have analysed the effects of Britain's return to gold in 1925. One line of argument has been that the return to gold was a state-contingent regime switch. An alternative view is that it was time-contingent. This paper shows that these approaches are not mutually exclusive. The solution for the exchange rate is derived in a model where a switch to a fixed rate takes place either when a state-contingent trigger is reached or at a fixed time, whichever is the sooner. State-contingent and time-contingent elements are thus combined within the same model.