کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
964181 | 930487 | 2009 | 15 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Foreign-exchange intervention strategies and market expectations: insights from Japan Foreign-exchange intervention strategies and market expectations: insights from Japan](/preview/png/964181.png)
This study extends the traditional set of central bank's interventions to include official announcements in order to provide empirical evidence on two pivotal questions: (i) are FX authorities able to influence market expectations with different instruments? (ii) how should interventions be designed to have the greatest impact? Using Japanese data over 1992–2004 and an event-study approach, we estimate the effect of different strategies on the USD/JPY exchange-rate risk-neutral density. Overall, transparent policies (public and oral interventions) appear to be the most effective. Moreover, the effect is greater when policies involve a financial cost (risk) suggesting that simple announcements can only be deemed as an imperfect substitute for actual interventions.
Journal: Journal of International Financial Markets, Institutions and Money - Volume 19, Issue 3, July 2009, Pages 432–446