An Estimation of Target Effective Exchange Rates: The Case of the U.S.
- 1 March 1992
- journal article
- research article
- Published by SAGE Publications in The American Economist
- Vol. 36 (1) , 22-28
- https://doi.org/10.1177/056943459203600105
Abstract
This paper derives optimal effective exchange rates, via loss-function minimization, for the US economy. The results attract considerable research interest; although it is generally believed that policy makers intervene only in infrequent emergency occasions in the foreign exchange market, this paper shows that the contrary is true; the US foreign exchange market is characterized by frequent central bank intervention.Keywords
This publication has 1 reference indexed in Scilit:
- The Estimation of Partial Adjustment Models with Rational ExpectationsEconometrica, 1979