O modelo de bandas cambiais e a variabilidade da taxa de câmbio

Abstract

The aim of this paper is to discuss and formally derive the effect of different exchange rate regimes on exchange rate variability. After a short survey about the controversy between flexible and fixed exchange rate regimes and the main features of a target zone regime, we develop a simple target zone model. Based on an extension of Krugman’s model, the focus is on the relationship with the monetary model with flexible prices, the solution procedure and - most importantly - the impact on exchange rate variability. The main result, which is obtained by evaluating the path of the exchange rate and based on numeric simulations, is that exchange rate variability changes inversely with the degree of exchange rate rigidity.