Currency intervention and the global portfolio balance effect: Japanese lessons

Petra Gerlach-Kristen, Robert McCauley and Kazuo Ueda ()

No WP442, Papers from Economic and Social Research Institute (ESRI)

Abstract: This paper shows that the Japanese foreign exchange interventions in 2003/04 seem to have lowered long-term interest rates in a wide range of countries, including Japan. It seems that this decline was triggered by the investment of the intervention proceeds in US bonds and that a global portfolio balance effect spread the resulting decline in US yields to other bond markets, thus easing global monetary conditions.

Keywords: exchange/investment/US (search for similar items in EconPapers)
Date: 2012-10
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://www.esri.ie/pubs/WP442.pdf

Related works:
Journal Article: Currency intervention and the global portfolio balance effect: Japanese lessons (2016)
Working Paper: Currency intervention and the global portfolio balance effect: Japanese lessons (2015)
Working Paper: Currency intervention and the global portfolio balance effect: Japanese lessons (2012)
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