Off-the-record target zones : Theory with an application to Hong Kong's currency board

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dc.contributor Bank of Finland
dc.contributor.author Chen, Yu-Fu
dc.contributor.author Funke, Michael
dc.contributor.author Glanemann, Nicole
dc.date.accessioned 2014-09-22T08:00:17Z
dc.date.available 2014-09-22T08:00:17Z
dc.date.issued 2010
dc.identifier.isbn 978-952- 462- 681-1
dc.identifier.issn 1456-5889
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/8154
dc.description Ilmestynyt myös Studies in nonlinear dynamics and econometrics 2013; 17 (4)
dc.description.abstract This paper provides a modelling framework for evaluating the exchange rate dynamics of a target zone regime with undisclosed bands. We generalize the literature to allow for asymmetric one-sided regimes. Market participants' beliefs concerning an undisclosed band change as they learn more about central bank intervention policy. We apply the model to Hong Kong's one-sided currency board mechanism. In autumn 2003, the Hong Kong dollar appreciated from close to 7.80 per US dollar to 7.70, as investors feared that the currency board would be abandoned. In the wake of this appreciation, the monetary authorities finally revamped the regime as a symmetric two-sided system with a narrow exchange rate band. Keywords: Currency Board Arrangement, Target Zone Model, Hong Kong JEL-Classification: C61, E42, F31, F32
dc.format.extent 31 s.
dc.language.iso eng
dc.relation.ispartofseries BOFIT Discussion Papers
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject valuuttapolitiikka
dc.subject valuuttakurssit
dc.subject Kiina
dc.subject tavoitteet
dc.subject valuuttaputki
dc.subject SP
dc.subject RP
dc.subject RP ST
dc.subject Bofit-kokoelma
dc.subject valuuttakomitea
dc.subject Hong Kong
dc.title Off-the-record target zones : Theory with an application to Hong Kong's currency board
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-201408072139
dc.subject.jel C61
dc.subject.jel E42
dc.subject.jel F31
dc.subject.jel F32
dc.series.name BOFIT Discussion Papers
dc.series.year 2010
dc.series.number 6/2010
dc.series.sortingnumber 6
dc.date.publication 4.5.2010
dc.identifier.doi 10.1515/snde-2012-0034
dc.contributor.orgunit Institute for Economies in Transition (BOFIT)
dc.description.publication Published in Studies in Nonlinear Dynamics and Econometrics, 2013; 17(4): 373-393

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