TY  - JOUR
AU  - Flood,Robert P.
AU  - Garber,Peter M.
TI  - The Linkage Between Speculative Attack and Target Zone Models of Exchange Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2918
PY  - 1989
Y2  - April 1989
UR  - http://www.nber.org/papers/w2918
L1  - http://www.nber.org/papers/w2918.pdf
N1  - Author contact info:
Robert Flood
Notre Dame
E-Mail: rflood1@nd.edu

Peter M. Garber
Deutsche Bank
60 Wall Street
New York, NY 10005
Tel: 212/250-5466
Fax: 212/250-2628
E-Mail: peter.garber@db.com
AB  - In this paper we generalize the target zone exchange rate as model formalized by Krugman (1988b) to include finite-sized interventions in defense of the zone. The main contributions of these pages consist of linking the recent developments in the theory of target zones to the mirror-image theory of speculative attacks on asset price fixing regimes and in using aspects of that linkage to give an intuitive interpretation to the smooth pasting" condition usually invoked as a terminal condition.
ER  -