INTRAMARGINAL INTERVENTIONS, BANDS AND THE PATTERNS OF EMS EXCHANGE-RATE DISTRIBUTIONS

• 成果类型: Article
• 署名作者: BEETSMA, RMWJ; VANDERPLOEG, F
• 署名单位: University of Amsterdam
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.2307/2527075
• 发表日期: 1994
• 页码: 583-602
• 关键词: rate dynamics; target zones

摘要

We document an empirical puzzle for EMS exchange rates during a period in which the bands on these exchanges rates were (almost) credible, i.e. exchange mte distributions are hump-shaped rather than U-shaped as predicted by the standard target zone model. We offer an explanation of this puzzle which is based on the combination of two realistic features, namely the presence of intramarginal interventions and wage/price sluggishness.