Playing with the Band: Dynamic Effects of Target Zones in an Open Economy
运用受控布朗运动技术，研究小开放经济中基本面变量的目标区如何影响名义汇率、实际汇率、价格和产出的实现，发现目标区通过预期效应减弱了外生基本面与内生变量之间的关系，且更窄的目标区能更稳定内生变量。
This paper applies techniques of regulated Brownian motion to a model of a small open economy to investigate how bands on fundamental driving variables affect the realization of the nominal exchange rate, the real exchange rate, prices, and output. The author shows that these bands mitigate the relationship between exogenous fundamentals and endogenous variables through their effects on expectations. He also considers the effects of changing the width of the band and finds greater stabilization of endogenous variables with more narrow bands on exogenous fundamentals. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.