Exchange Rate Targets and Currency Bands

  title={Exchange Rate Targets and Currency Bands},
  author={P. Krugman and Marcus H. Miller},
Research programmes in economics usually emerge from the intersection between a new analytical approach and a real economic problem. In the last few years, such a programme has emerged in international monetary economics, which is underpinned by a theoretical framework grounded in stochastic calculus and the increasing prominence in the real world of the international monetary arrangements under which national monetary authorities attempt to keep exchange rates within bands or 'target zones… Expand