EconPapers    
Economics at your fingertips  
 

Foreign exchange market intervention and asymmetric preferences

Helena Glebocki Keefe and Hedieh Shadmani

Emerging Markets Review, 2018, vol. 37, issue C, 148-163

Abstract: Central banks in many emerging market economies intervene in currency markets to mitigate volatility and counter appreciation/depreciation pressure. This paper investigates whether central banks in twenty four emerging economies are “leaning against the wind” in their intervention strategies, whether they have an asymmetric response to exchange rate movements, and whether the response changes after the Global Financial Crisis. Our empirical investigation finds solid evidence that they prefer to dampen appreciation pressures more substantially than depreciation pressures, even after the crisis.

Keywords: Exchange rates; Optimal Policy; Asymmetric Preferences; Foreign Exchange Market intervention; Emerging Markets (search for similar items in EconPapers)
JEL-codes: E58 E61 F31 G15 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014117305083
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:37:y:2018:i:c:p:148-163

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-01-19
Handle: RePEc:eee:ememar:v:37:y:2018:i:c:p:148-163