Is Foreign Exchange Intervention a Panacea in Diversified Circumstances? The Perspectives of Asymmetric Effects

Wenbo Wang, Dieu Thanh Le and Hail Park
Additional contact information
Wenbo Wang: Department of International Business and Trade, Kyung Hee University, Seoul 02447, Korea
Dieu Thanh Le: Economic Division, Embassy of the Korea, Hanoi 10000, Vietnam
Hail Park: Department of International Business and Trade, Kyung Hee University, Seoul 02447, Korea

Sustainability, 2020, vol. 12, issue 7, 1-20

Abstract: Owing to the country’s heavy reliance on exports, the role of foreign exchange intervention in South Korea’s economic development is self-evident. The effectiveness of the intervention is what we are concerned with in this paper. Recently, a growing body of literature has engaged in exploring the asymmetric effects of foreign exchange intervention both theoretically and empirically. Against this background, we employ a threshold vector autoregression (TVAR) model in parallel with its generalized impulse response functions (GIRFs) to show that there are asymmetric effects of the Bank of Korea (BOK)-led interventions regardless of the volatility regimes.

Keywords: foreign exchange intervention; threshold VAR; asymmetric effects; GIRF (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/7/2913/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/7/2913/ (text/html)

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:gam:jsusta:v:12:y:2020:i:7:p:2913-:d:342024

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().