TY  - JOUR
AU  - Delgado,Francisco
AU  - Dumas,Bernard
TI  - Target Zones Big and Small
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3601
PY  - 1991
Y2  - January 1991
UR  - http://www.nber.org/papers/w3601
L1  - http://www.nber.org/papers/w3601.pdf
N1  - Author contact info:
Bernard Dumas
INSEAD
boulevard de Constance
77305 Fontainebleau Cedex
FRANCE
Tel: +33 1 60 72 43 73
Fax:  +33 1 60 72 40 50
E-Mail: bernard.dumas@insead.edu
AB  - Under different assumptions about the underlying monetary shocks, we study target zones of various widths and the effect they have on variables like the interest differential. The stochastic disturbances assumed are successively a non-zero mean random walk and a mean reverting process. The latter is used to incorporate the "leaning against the wind" policy (intrainarginal intervention) which is prevalent in the EMS.
ER  -