We introduce two methods to control chaos in higher-dimensional discrete maps with constant feedback. It is analytically shown for a general class of function vectors that chaotic attractors can be converted into fixed point attractors. Additionally, a method to choose an appropriate constant feedback is presented. The application of these methods does not require a priori knowledge of system equations, since time series information can be used. Desired periodic orbits can be accessed by varying the constant feedback. As an example, the methods are applied to the Hénon map.
Foreign exchange markets regularly display severe bubbles. This paper explores whether or not so-called target zone interventions are an effective tool for central banks to stabilize the exchange rate. We define such intervention operations as buying/selling an undervalued/overvalued currency when the distance between the exchange rate and its fundamental value exceeds a critical threshold value. On the basis of a non-linear empirical exchange rate model with chartists and fundamentalists, we find that target zone interventions not only have the power to reduce misalignments but also earn profits.
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