READING A TARGET ZONE IN KEYNES INDIAN CURRENCY AND FINANCE

Authors
SMITH GW
Citation
Gw. Smith, READING A TARGET ZONE IN KEYNES INDIAN CURRENCY AND FINANCE, Economic journal, 105(430), 1995, pp. 661-668
Citations number
17
Categorie Soggetti
Economics
Journal title
Economic journal → ACNP
ISSN journal
00130133
Volume
105
Issue
430
Year of publication
1995
Pages
661 - 668
Database
ISI
SICI code
0013-0133(1995)105:430<661:RATZIK>2.0.ZU;2-M
Abstract
The gold-exchange standard in India 1893-1913 was characterized by a n arrow target zone for the exchange rate, a wide annual range for the i nternational interest-rate differential, and negative (seasonal) autoc orrelation in interest rates. These properties are consistent with a s tandard target-zone model in which fundamentals are negatively autocor related on a Markov chain.