Nominal exchange rate pegging, escape clauses and targeting of the real exchange rate
We consider an economy under a fixed exchange rate system, but with bounds (a minimum level or a band) on the real exchange rate. The international price of the tradable good is characterized by the continuous arrival of shocks that change its level. In a model with microfoundations, we investigate...
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| Format: | Others |
| Language: | en_US |
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Texas A&M University
2006
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| Online Access: | http://hdl.handle.net/1969.1/3916 |