Foreign exchange market intervention and asymmetric preferences
Helena Glebocki Keefe and
Emerging Markets Review, 2018, vol. 37, issue C, 148-163
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)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
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 Haili He ().