#1994-009D "Endogenous Realignments and the Sustainability of a Target Zone."
by Christopher J. Neely, Paul A. Weller, and Dean Corbae

Revised 1999

We examine the effects of endogenously determined realignment expectations in a model of a target zone with sluggish price adjustment. We allow these expectations to be based on a policy rule that generates an increasing probability of realignment as output moves away from full employment. More...

PUBLISHED: Oxford Economic Papers, July 2003, 55(3), pp. 494-511