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Exchange Interventions (exchange + intervention)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting80%

Kinds of Exchange Interventions

  • foreign exchange intervention
    		•

    Selected Abstracts

    HIGH-FREQUENCY ANALYSIS OF FOREIGN EXCHANGE INTERVENTIONS: WHAT DO WE LEARN?

    JOURNAL OF ECONOMIC SURVEYS, Issue 1 2010
    Lukas Menkhoff
    Abstract The high-frequency analysis of foreign exchange dynamics is helpful in order to better identify the impact of central bank interventions. Evidence robustly shows that interventions do indeed move the exchange rate level in the desired direction. Interventions increase volatility in the short run as they are regarded as information; but they can reduce volatility overall. Ways of transmission may reach beyond the signalling channel and also include the portfolio balance and a damping channel. Finally, interventions are more successful if they obey certain conditions, such as being coordinated among central banks and going with the market and fundamentals. [source]

    Interdependencies between Monetary Policy and Foreign Exchange Interventions under Inflation Targeting: The Case of Brazil and the Czech Republic

    INTERNATIONAL FINANCE, Issue 2 2010
    Jean-Yves Gnabo
    Inflation-targeting central banks often explicitly reserve the right to intervene in foreign exchange markets when the exchange rate ,deviates from fundamentals' and/or ,displays excessive volatility'. In the case of emerging markets, central banks can often ill afford to neglect exchange rate developments when setting monetary policy because of a high pass-through of nominal exchange rate changes to domestic prices. As a result, interventions and monetary policy are interrelated, a hypothesis that has been overlooked in the literature. To bridge this gap, this paper includes monetary policy indicators in the estimation of intervention reaction functions for Brazil and the Czech Republic since the adoption of inflation targeting. Our main finding is that interventions take place independently of the contemporaneous monetary policy setting in Brazil, but not in the Czech Republic, where both policies appear to be coordinated. [source]

    Managed Floating in Australia,

    ECONOMIC PAPERS: A JOURNAL OF APPLIED ECONOMICS AND POLICY, Issue 4 2009
    Shawn Chen-Yu Leu
    F31; F41 This paper evaluates the level of managed floating and the exchange rate policy in Australia during the officially floating period from 1984 to 2004. We construct index measures of exchange market pressure and foreign exchange intervention using a small open economy monetary model. The estimation uses the Johansen cointegration method as the structural macroeconomic model is assumed to represent long-run equilibrium relationships. We find that the RBA mainly implemented leaning-against-the-wind exchange rate policy that aimed at guiding the exchange rate back to the equilibrium value while reducing the variability of the dynamic adjustment path. [source]

    Myths and reality of foreign exchange interventions: an application to Japan,

    INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 2 2007
    Takatoshi Ito
    Abstract The objective of this paper is to examine what we know, and do not know, about foreign exchange interventions by the monetary authorities, and to present some new evidence on the Japanese intervention activities. With limited data, efforts are made to determine whether some conventionally made assertions are a myth or a fact. Copyright © 2007 John Wiley & Sons, Ltd. [source]