The Yen-Dollar Rate - Have Interventions Mattered? |
|
Author:
| Ramaswamy, Ramana Samiei, Hossein |
Series title: | IMF Working Papers |
ISBN: | 978-1-4527-9565-2 |
Publication Date: | Jun 2000 |
Publisher: | International Monetary Fund
|
Book Format: | Ebook |
List Price: | Contact Supplier contact
|
Book Description:
|
Using daily data for 1995-99, this paper estimates a simple forward looking model of the exchange rate to show that foreign exchange interventions have, on the whole, had small but persistent effects on the yen-dollar rate. Contrary to conventional wisdom, sterilized interventions have mattered. Consistent with conventional wisdom, coordinated interventions have a higher probability of success and move the yen-dollar rate by a larger margin than unilateral interventions. A probit model...
More DescriptionUsing daily data for 1995-99, this paper estimates a simple forward looking model of the exchange rate to show that foreign exchange interventions have, on the whole, had small but persistent effects on the yen-dollar rate. Contrary to conventional wisdom, sterilized interventions have mattered. Consistent with conventional wisdom, coordinated interventions have a higher probability of success and move the yen-dollar rate by a larger margin than unilateral interventions. A probit model indicates that both an excessive appreciation and depreciation of the yen provoke interventions, and that interventions occur in clusters--if there is one today, there will likely be another tomorrow.