This paper reviews the literature on exchange rate economics over the last two decades,
with particular reference to recent developments. Exchange rate economics has been one of …

How do exchange rate bands work compared to completely fixed rates (between
realignments); or, more precisely, what are the dynamics of exchange rates, interest rates …

Fixed exchange rates are less volatile than floating rates. But the volatility of macroeconomic
variables such as money and output does not change very much across exchange rate …

Publisher Summary This chapter discusses the operation and collapse of fixed exchange
rate regimes. It reports recent research contributions to the understanding of the dynamics of …

The paper presents estimates of devaluation expectations for six ERM currencies relative to
the Deutsche mark, for the period March 1979–April 1992. Both the 'simplest test'and the …

The paper argues that the reason real world fixed exchange rate regimes usually have finite
bands, instead of completely fixed exchange rates between realignments, is that exchange …

This paper is a study of devaluation expectations for the Swedish krona during the period
1985 to 1992. During this period Sveriges Riksbank (the central bank of Sweden) defended …

The models in the literature on exchange‐rate target zones imply a non‐linear time series
model for the exchange rate. We show how the parameters of such models can be estimated …

We propose a simple jump‐diffusion model for an exchange rate target zone. The model
captures most stylized facts from the existing target zone models while remaining …

The Swedish exchange rate band is studied using daily data on exchange rates and interest
rate differentials for the 1980s. Applying a number of different statistical and econometric …