Exchange rate dynamics, central bank interventions and chaos control methods

Autor(en): Wieland, C
Westerhoff, FH
Stichwörter: BEHAVIOR; Business & Economics; central bank interventions; chaos control; Economics; exchange rate dynamics; MAPS; MARKET; RATE EXPECTATIONS; TECHNICAL ANALYSIS; technical and fundamental trading rules
Erscheinungsdatum: 2005
Herausgeber: ELSEVIER
Journal: JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
Volumen: 58
Ausgabe: 1
Startseite: 117
Seitenende: 132
Zusammenfassung: 
We use a simple chartist-fundamentalist model developed by Day and Huang to explore recent chaos control algorithms as potential candidates for central bank intervention rules. We find that methods such as delayed feedback control, OGY and constant feedback have, in principle, the potential to reduce exchange rate variability and deviations from fundamentals even in the presence of large dynamic noise. (c) 2004 Elsevier B.V. All rights reserved.
Beschreibung: 
8th Viennese Workshop on Optimal Control, Dynamic Games and Nonlinear Dynamics, Vienna, AUSTRIA, APR, 2003
ISSN: 01672681
DOI: 10.1016/j.jebo.2003.12.002

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