An Interest Rate Defense of a Fixed Exchange Rate? /
Defending a government's exchange-rate commitment with active interest rate policy is not an option in the Krugman-Flood-Garber (KFG) model of speculative attacks. In that model, the interest rate is the passive reflection of currency-depreciation expectations. In this paper we show how to adap...
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| Format: | Journal |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2000.
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| Series: | IMF Working Papers; Working Paper ;
No. 2000/159 |
| Online Access: | Full text available on IMF |