01743cas a2200241 a 4500 AALejournalIMF003934 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451922042 1018-5941 BD-DhAAL BD-DhAAL Isard, Peter. Realignment Expectations, Forward Rate Bias, and Sterilized Intervention in an Adjustable Peg Exchange Rate Model with Policy Optimization / Peter Isard. Washington, D.C. : International Monetary Fund, 1994. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper models an adjustable peg exchange rate arrangement as a policy rule with an escape clause under which the timing and magnitudes of realignments are the outcomes of policy optimization decisions. Under the assumptions that market participants are rational, risk averse, and fully informed about the incentives of policymakers, the analysis focuses on the implications for relating realignment expectations to the state variables that enter the policy objective function, for modeling the bias in using forward exchange rates to predict future spot rates, and for characterizing the effectiveness of sterilized intervention. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1994/020 Full text available on IMF http://elibrary.imf.org/view/journals/001/1994/020/001.1994.issue-020-en.xml IMF e-Library