Is Official Exchange Rate Intervention Effective

I examine the effectiveness of exchange rate intervention within the context of a Markov‐switching model for the real exchange rate. The probability of switching between stable and unstable regimes depends nonlinearly upon the amount of intervention, the degree of misalignment and the duration of the regime. Applying this to dollar–mark data for the period 1985–98, I find that intervention increases the probability of stability when the rate is misaligned, and that its influence grows with the degree of misalignment. However, intervention within a small neighbourhood of equilibrium will result in a greater probability of instability

Context (archaeology) · Degree (music) · Econometrics · Economics · Exchange rate · Geography · Intervention (counseling) · Markov chain · Monetary economics · Physics · Statistics · Global Financial Crisis and Policies · Market Dynamics and Volatility · Mathematics · Monetary Policy and Economic Impact · Psychology

• Organizing Foreign Exchange Intervention in the Euro Area

  Open Access•C Randall Henning•JCMS Journal of Common Market…•2007

  Añadir item

• Tests of goods market integration between China and European countries

  Shu-Kam Lee, Lubanski Lam et al.•China Economic Journal•2023

  Añadir item

• Oral Interventions Versus Actual Interventions in FX Markets – an Event‐Study Approach

  Open Access•Marcel Fratzscher•The Economic Journal•2008

  Añadir item

• The Purchasing Power Parity Debate

  Open Access•Alastair M Taylor, Alan M Taylor et al.•The Journal of Economic…•2004

  Añadir item

• Real Exchange Rates and Competitiveness

  Open Access•Trine Iversen, Torben Iversen et al.•American Political Science Review•2010

  Añadir item

• Estimating and Testing Linear Models with Multiple Structural Changes

  Jushan Bai, Pierre Perron•Econometrica•1998

  Añadir item

• Business-Cycle Phases and Their Transitional Dynamics

  Andrew J Filardo, Andrew Filardo•Journal of Business and Economic…•1994

  Añadir item

• Identifying Bull and Bear Markets in Stock Returns

  John M Maheu, Thomas H McCurdy•Journal of Business and Economic…•2000

  Añadir item

• Duration-Dependent Transitions in a Markov Model of U.S. GNP Growth

  J Michael Durland, Thomas H McCurdy•Journal of Business and Economic…•1994

  Añadir item

• Official Intervention in the Foreign Exchange Market

  Peter D Spencer, Peter Spencer•Journal of Political Economy•1985

  Añadir item

• Modelling Business Cycle Nonlinearity in Conditional Mean and Conditional Variance

  Open Access•Dominic Peel, D A Peel et al.•Economica•1998

  Añadir item

• Charts, Noise and Fundamentals in the London Foreign Exchange Market

  Helen Allen, Mark P Taylor•The Economic Journal•1990

  Añadir item