The credibility of the Venezuela crawling-band system

ABSTRACT IN ENGLISH: This paper studies the credibility of the Venezuela crawling-band exchange rate regime during the period July, 1996-February, 2002. We show that, introducing some modifications, the credibility analysis widely applied to target zone regimes can also be used in studying the credi...

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Bibliographic Details
Published in:Revista de economia del Rosario 2006-12, Vol.9 (2), p.111-124
Main Authors: Campos, María I, Torres, José L, Villegas, Esmeralda
Format: Article
Language:English
Subjects:
band exchange rate system
crawling
credibilidad
credibility
Economic analysis
Economic fluctuations
Economics
Exchange rates
Longitudinal studies
realignments
realineamientos
Regional economics
Sistema cambiario de bandas de fluctuación crecientes a tasa constante
Venezuela
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Summary:ABSTRACT IN ENGLISH: This paper studies the credibility of the Venezuela crawling-band exchange rate regime during the period July, 1996-February, 2002. We show that, introducing some modifications, the credibility analysis widely applied to target zone regimes can also be used in studying the credibility of crawling-band regimes. In analyzing the credibility of the Venezuela crawling band, first we use the so-called simple credibility tests developed by Svensson (1991). Additionally, we estimate the expected rate of realignment using the drift-adjustment method. Both the credibility tests and the drift-adjustment method give similar results, showing that the crawling-band system was highly credible during the period. // ABSTRACT IN SPANISH: Este artículo estudia la credibilidad del régimen cambiario de bandas de fluctuación crecientes a tasa constante de Venezuela durante el periodo julio de 1996-febrero de 2002. Mostramos que los análisis de credibilidad aplicados a zonas objetivo, introduciendo algunas modificaciones, también pueden utilizarse para estudiar la credibilidad de sistemas cambiarios de bandas de fluctuación crecientes a tasa constante. En este trabajo aplicamos tanto el denominado test de credibilidad de Svensson como el método de ajuste de la deriva. Con ambos métodos obtenemos resultados similares en cuanto al alto grado de credibilidad del sistema durante el periodo analizado.
ISSN:0123-5362
2145-454X