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https://hdl.handle.net/10419/26125
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Bauer, Christian | en |
dc.contributor.author | De Grauwe, Paul | en |
dc.contributor.author | Reitz, Stefan | en |
dc.date.accessioned | 2008-01-02 | - |
dc.date.accessioned | 2009-07-28T08:16:13Z | - |
dc.date.available | 2009-07-28T08:16:13Z | - |
dc.date.issued | 2007 | - |
dc.identifier.uri | http://hdl.handle.net/10419/26125 | - |
dc.description.abstract | The target zone model of Krugman (1991) has failed empirically. In this paper, we develop a model of the exchange rate with heterogeneous agents in a free floating and a target zone regime. We show that this simple model mimics the empirical puzzles of exchange rates: excessive volatility, fat tails, volatility clustering, and disconnection from the fundamentals. In addition, the target zone regime replicates a reduced nominal volatility for the same level of fundamental volatility as in the free floating regime and the distribution of the exchange rate within the band is hump-shaped. | en |
dc.language.iso | eng | en |
dc.publisher | |aCenter for Economic Studies and ifo Institute (CESifo) |cMunich | en |
dc.relation.ispartofseries | |aCESifo Working Paper |x2080 | en |
dc.subject.jel | F31 | en |
dc.subject.jel | F41 | en |
dc.subject.ddc | 330 | en |
dc.subject.stw | Wechselkurs | en |
dc.subject.stw | Target Zone | en |
dc.subject.stw | Wertpapierhandel | en |
dc.subject.stw | Anlageverhalten | en |
dc.subject.stw | Agent-based Model | en |
dc.subject.stw | Theorie | en |
dc.title | Exchange rates dynamics in a target zone: a heterogeneous expectations approach | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 555917037 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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