Abstract

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 techniques it is found that the first generation of target zone models cannot provide an adequate explanation of Swedish data. The main reasons are probably intra-marginal interventions by the Swedish central bank and time varying devaluation expectations.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.