Exchange rate target zones and stock pri
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Bernd Kempa; Michael Nelles; Christian Pierdzioch
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Article
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1999
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John Wiley and Sons
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English
β 211 KB
We show how agents' rational expectations regarding the state-contingent activation of policy instruments do not only impact the asset price it is designed to affect but spill over onto the entire range of asset prices in an economy. We present an application to exchange rate target zones as a state