Foreign exchange intervention
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Foreign exchange intervention theory and evidence by Geert J. Almekinders

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Published by E. Elgar in Aldershot, UK, Brookfield, Vt., US .
Written in English

Subjects:

  • Foreign exchange administration.,
  • Foreign exchange rates.,
  • Banks and banking, Central.

Book details:

Edition Notes

StatementGeert J. Almekinders.
Classifications
LC ClassificationsHG3851 .A46 1995
The Physical Object
Paginationxii, 225 p. :
Number of Pages225
ID Numbers
Open LibraryOL1275255M
ISBN 101858982634
LC Control Number95006824

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  This book challenges the conventional wisdom, demonstrating that such intervention can be an effective and extremely important tool for policymakers. Using previously unavailable daily intervention data from the US Federal Reserve and German Bundesbank, the authors show that even "sterilized" intervention -intervention that entails no corresponding . This book documents the effectiveness of intervention and pays special attention to the role of foreign exchange intervention policy within inflation-targeting monetary frameworks. The main lesson from Latin America's foreign exchange interventions, in the context of inflation targeting, is that the region has had a considerable degree of success. Of buy foreign currency or sell foreign currency on the foreign exchange market, this is one thing a central bank can do to cause a domestic currency appreciation. Of increase, decrease, or keep the same, this is one thing a central bank can do to the domestic money supply to induce a domestic currency appreciation. INTRODUCTION This paper examines sterilized foreign exchange intervention (FXI) practices and their effectiveness in mitigating appreciation pressures, using a new qualitative and quantitative database for a panel of 15 economies covering the period –10, with special focus on Latin America (LA).

A Theory of Foreign Exchange Interventions* Sebastian´ Fanelli MIT Ludwig Straub MIT Octo Abstract This paper develops a theory of foreign exchange interventions in a small open economy with limited capital mobility. Home and foreign bond markets are segmented and intermediaries are limited in their capacity to arbitrage across markets. WP Foreign exchange intervention: strategies and effectiveness 1 Foreign exchange intervention: strategies and effectiveness Nuttathum Chutasripanich and James Yetman1 Abstract Foreign exchange intervention has been actively used as a policy tool in many economies in Asia and elsewhere. In this paper, we examine two intervention rulesCited by: 2.   A foreign exchange intervention is a monetary policy tool used by a central bank. When the central bank takes an active, participatory role in influencing the monetary funds transfer rate of the national currency. It usually does so with its own reserves or is own authority to generate the currency. alternatives); and (iii) consider foreign exchange interventions and capital flow management measures as exceptions, to be used only when distortions could compromise an adequate foreign exchange price discovery process and not to target any foreign exchange level. In this context, this book is an invaluable con-.

Summary. Foreign exchange intervention is widely used as a policy tool, particularly in emerging markets, but many facets of this tool remain limited, especially in the context of flexible exchange rate regimes. The Latin American experience can be informative because some of its largest countries adopted floating exchange rate regimes. In Foreign Exchange Intervention, Geert Almekinders explains why central banks continue to carry out foreign exchange interventions despite their poor track record. Central bank intervention in foreign currency markets is widely regarded as ineffective by economists, policy makers and financiers, yet many central banks continue to enter the market in periods of . Foreign exchange intervention is frequently being used by central banks in countries which have a floating exchange rate. Most theoretical monetary policy models, however, do not take this phenomenon into account. This book contributes to closing this gap between theory and practice by interpreting foreign exchange intervention as an. Get this from a library! Foreign exchange intervention: theory and evidence. [Geert J Almekinders] -- Central bank intervention in foreign currency markets is widely regarded as ineffective by economists, policy makers and financiers, yet many central banks continue to enter the market in periods of.