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Off-the-Record Target Zones: Theory with an Application to Hong Kongs Currency Board
(University of DundeeHamburg University, 2010)
This paper provides a modelling framework for evaluating the exchange rate dynamics of a target zone regime with undisclosed bands. We generalize the literature to allow for asymmetric one-sided regimes. Market participants' ...
A Soft Edge Target Zone Model: Theory And Application To Hong Kong
(University of DundeeHamburg University, 2009)
Hong Kong’s currency is pegged to the US dollar in a currency board arrangement. In autumn 2003, the Hong Kong dollar appreciated from close to 7.80 per US dollar to 7.70, as investors feared that the currency board would ...