The Market pp 95-111 | Cite as

The Foreign Exchange Market and the Effect of Currency Bands

  • Marcus Miller
  • Paul Weller
Part of the British Association for the Advancement of Science book series (BAAS)

Abstract

Flood and Garber (1983) argued that the expectation of Britain’s return to the Gold Standard should have affected the value of the pound sterling even before the event; and they advocates the use of ‘stochastic process switching’ techniques to analyse such phenomena. Subsequently, it was international efforts to stabilise exchange rates (such as the Louvre Accord of 1987) which stimulated Paul Krugman (1988) to another application of these techniques — to study how currencies might behave inside wide currency bands.

Keywords

Assure Defend Alan Swivel 

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Copyright information

© The British Association for the Advancement of Science 1992

Authors and Affiliations

  • Marcus Miller
  • Paul Weller

There are no affiliations available

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