Target Zones and Exchange Rate Dynamics
构建了一个简单的汇率行为模型，研究目标区间制度下，即使汇率在区间内未受积极干预，货币政策调整预期也会影响汇率行为，并与期权定价问题有形式上的相似性。
This paper develops a simple model of exchange rate behavior under a target zone regime. It shows that the expectation that monetary policy will be adjusted to limit exchange rate variation affects exchange rate behavior even when the exchange rate lies inside the zone and is thus not being defended actively. Somewhat surprisingly, the analysis of target zones turns out to have a strong formal similarity to problems in option pricing and investment under uncertainty.