Construct · 1 fields · 1 citations

target zone model: a standalone construct

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International macroeconomics

a model in which a credible band for the exchange rate stabilizes it inside the band, since expected intervention pulls it toward the center.

In international macroeconomics, target zone model refers to a model in which a credible band for the exchange rate stabilizes it inside the band, since expected intervention pulls it toward the center. This meaning comes from Krugman (1991) in The Quarterly Journal of Economics.[1]

Unit
Recovery means
Measured by

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Nearby constructs

band2 fields · 2 citationsjingle · one word, two constructs exchange4 fields · 7 citationsjingle · one word, four constructs model3 fields · 3 citationsjingle · one word, three constructs

References

Krugman, P. R. (1991). Target Zones and Exchange Rate Dynamics. The Quarterly Journal of Economics, 106(3), 669-682. https://doi.org/10.2307/2937922

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