When is foreign exchange intervention effective? Evidence from 33 countries
Marcel Fratzscher (),
Oliver Gloede (),
Lucio Sarno () and
No 12510, CEPR Discussion Papers from C.E.P.R. Discussion Papers
This paper examines foreign exchange intervention based on novel daily data covering 33 countries from 1995 to 2011. We find that intervention is widely used and an effective policy tool, with a success rate in excess of 80 percent under some criteria. The policy works well in terms of smoothing the path of exchange rates, and in stabilizing the exchange rate in countries with narrow band regimes. Moving the level of the exchange rate in flexible regimes requires that some conditions are met, including the use of large volumes and that intervention is made public and supported via communication.
Keywords: Foreign exchange intervention; exchange rate regimes; effectiveness measures; communication. (search for similar items in EconPapers)
JEL-codes: E58 F31 F33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mac, nep-mon and nep-opm
References: View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
Journal Article: When Is Foreign Exchange Intervention Effective? Evidence from 33 Countries (2019)
Working Paper: When Is Foreign Exchange Intervention Effective? Evidence from 33 Countries (2015)
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:cpr:ceprdp:12510
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... rs/dp.php?dpno=12510
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().