The Signalling Channel of Central Bank Interventions: Modelling the Yen/US Dollar Exchange Rate

Yu-Fu Chen, Michael Funke and Nicole Glanemann

Open Economies Review, 2014, vol. 25, issue 2, 336 pages

Abstract: This paper presents a theoretical framework analysing the signalling channel of exchange rate interventions as an informational trigger. We develop an implicit target zone framework with learning in order to model the signalling channel. The theoretical premise of the model is that interventions convey signals that communicate information about the exchange rate objectives of the central bank. The model is used to analyse the impact of Japanese FX interventions during the period 1999–2011 on the yen/US dollar dynamics. Copyright Springer Science+Business Media New York 2014

Keywords: Exchange rates; Interventions; Japan; C61; E58; F31 (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: The Signalling Channel of Central Bank Interventions: Modelling the Yen/US Dollar Exchange Rate (2012)
Working Paper: The Signalling Channel of Central Bank Interventions: Modelling the Yen / US Dollar Exchange Rate (2011)
Working Paper: The Signalling Channel of Central Bank Interventions: Modelling the Yen/US Dollar Exchange Rate (2011)
Working Paper: The Signalling Channel of Central Bank Interventions: Modelling the Yen/US Dollar Exchange Rate (2011)
Working Paper: The Signalling Channel of Central Bank Interventions: Modelling the Yen / US Dollar Exchange Rate (2011)
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DOI: 10.1007/s11079-013-9280-x

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