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Target zone credibility and economic fundamentals

✍ Scribed by Marco Tronzano; Zacharias Psaradakis; Martin Sola


Book ID
117434529
Publisher
Elsevier Science
Year
2003
Tongue
English
Weight
147 KB
Volume
20
Category
Article
ISSN
0264-9993

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This paper proposes a Bayesian extension of Svensson's (1991. IMF Staff Papers 38: 655 -665) test of target zone credibility. The credibility measures considered allow us to quantify the target zone's overall credibility at each point in time as well as a measure of long-run credibility. In an appli