On the sustainability of exchange rate target zones with central parity realignments

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 134
Issue: C
Pages: 86-89

Authors (1)

Martínez-García, Enrique (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I show that parity realignments alone do not suffice to ensure the long-run sustainability of an exchange rate target zone with imperfect credibility due to the gambler’s ruin problem. However, low credibility and frequent realignments can destabilize the exchange rate.

Technical Details

RePEc Handle
repec:eee:ecolet:v:134:y:2015:i:c:p:86-89
Journal Field
General
Author Count
1
Added to Database
2026-01-25