The presence of target zone nonlinearities when narrower bands exist within official zones
Résumé
The presence of target zone nonlinearities is generally refuted in empirical research. We argue that this may be due to estimation being performed vis-à-vis official limits when monetary authorities in fact are targeting a narrower band. Estimation results for the Belgian and French franc confirm that nonlinearities are present when narrower zones are accounted for.
Origine : Fichiers produits par l'(les) auteur(s)
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