| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP1298
|
| DP1298 Labour Market Institutions and the Cohesion of the Middle Class |
| Gilles Saint-Paul
|
| 发表日期 | 1995-11-30
|
| 出版年 | 1995
|
| 语种 | 英语
|
| 摘要 | We examine the effects of endogenously determined realignment expectations in a model of a target zone with sluggish price adjustment. We allow these expectations to be based on a policy rule which attaches differing weights to output and price stability. We find that for realistic parameter values even relatively small misalignments of the band lead to strongly skewed conditional distributions for the nominal exchange rate, thus generating pressures for realignment. We show that the reason for this is that the speed of adjustment in the absence of realignments is rather slow. Further, we find that variable realignment expectations impose tight limits on the width of a sustainable band. If realignment expectations reach quite moderate levels there no longer exists an intervention policy that will support the band. Finally, we show that even relatively infrequent realignments can substantially speed the process of adjustment to misalignment, casting doubt on the desirability of a policy designed to maintain a fully credible band in the face of significant external shocks. |
| 主题 | Financial Economics
; International Macroeconomics
|
| 关键词 | European monetary system
Realignments
Target zones
|
| URL | https://cepr.org/publications/dp1298
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/530430
|
推荐引用方式
GB/T 7714 |
Gilles Saint-Paul. DP1298 Labour Market Institutions and the Cohesion of the Middle Class. 1995.
|
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