Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10437743 | Journal of Economic Behavior & Organization | 2005 | 16 Pages |
Abstract
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Cristian Wieland, Frank H. Westerhoff,