The Simplest Test of Target Zone Credibility
Title | The Simplest Test of Target Zone Credibility PDF eBook |
Author | International Monetary Fund |
Publisher | International Monetary Fund |
Pages | 38 |
Release | 1990-11-01 |
Genre | Business & Economics |
ISBN | 1451947003 |
Under the assumption of no arbitrage exchange rate target zone credibility is tested by whether domestic interest rates fall within “rate-of-return bands” between the maximum and minimum home-currency rate of return on a foreign investment absent a devaluation. Under the assumption of uncovered interest rate parity credibility is tested by whether expected future exchange rates fall within the exchange rate band. These tests are applied on data about the Swedish target zone during January 1987-August 1990.
The Simplest Test of Target Zone Credibility
Title | The Simplest Test of Target Zone Credibility PDF eBook |
Author | Lars E. O. Svensson |
Publisher | |
Pages | |
Release | 1992 |
Genre | |
ISBN |
Abstract: addition, the expected future exchange rates are used to give an estimate of the
The Simplest Test of Target Zone Credibility
Title | The Simplest Test of Target Zone Credibility PDF eBook |
Author | |
Publisher | |
Pages | |
Release | 1992 |
Genre | |
ISBN |
The simplest test of target zone credibility
Title | The simplest test of target zone credibility PDF eBook |
Author | Lars Svensson |
Publisher | |
Pages | 16 |
Release | 1990 |
Genre | |
ISBN |
The Simplest Test of Inflation Target Credibility
Title | The Simplest Test of Inflation Target Credibility PDF eBook |
Author | Lars E. O. Svensson |
Publisher | |
Pages | 28 |
Release | 1994 |
Genre | Anti-inflationary policies |
ISBN |
Arbitrage-based Tests of Target Zone Credibility
Title | Arbitrage-based Tests of Target Zone Credibility PDF eBook |
Author | José Campa |
Publisher | |
Pages | 62 |
Release | 1995 |
Genre | Foreign exchange futures |
ISBN |
IMF Staff papers
Title | IMF Staff papers PDF eBook |
Author | International Monetary Fund. Research Dept. |
Publisher | International Monetary Fund |
Pages | 236 |
Release | 1991-01-01 |
Genre | Business & Economics |
ISBN | 1451973136 |
Trade liberalization in developing countries is frequently opposed on the grounds that, because it is likely to cause a deterioration in the external balance, it may not be a viable policy option for countries facing foreign exchange constraints. Recent literature suggests, however, an ambiguous relationship between tariff changes and the current account. This paper shows that if liberalization involves reducing tariffs on imported intermediate inputs (a reform that has figured prominently in developing countries), then the current account may improve or deteriorate, depending on the level of initial trade distortions and the structure of the economy.[JEL F13, F32, F41]