TY  - JOUR
AU  - Pessach,Shula
AU  - Razin,Assaf
TI  - Targeting the Exchange Rate: An Empirical Investigation
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3662
PY  - 1994
Y2  - April 1994
UR  - http://www.nber.org/papers/w3662
L1  - http://www.nber.org/papers/w3662.pdf
N1  - Author contact info:
Assaf Razin
Department of Economics
Cornell University
Uris 422
Ithaca, NY 14853
Tel: 607/255-9625
Fax: 607/255-2818
E-Mail: ar256@cornell.edu
AB  - The purpose of this paper is to implement empirically a variant of the new theory of exchange rate targeting, suitable for high inflation small open economies. The theory formulates an expectations induced relationship between the exchange rate and the fundamental subject to random shocks and target zone constraints on rates of depreciation. The empirical analysis identifies the roles played by policy and market fundamentals in foreign exchange markets, and estimate the key parameters of the exchange rate dynamic equation.
ER  -