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Modelling Central Bank Intervention Activity under Inflation Targeting Author info | Abstract | Publisher info | Download info | Related research | Statistics Roman Horvath () (Czech National Bank and IES, Charles University)
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Using daily data from the Czech Republic in 1/1/1998-31/12/2002, we find that foreign exchange intervention activity is determined by the degree of exchange rate misalignment and lagged intervention. Additionally, inflation targeting regime is a binding constraint of intervention activity.
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Article provided by Economics Bulletin in its journal Economics Bulletin .
Volume (Year): 6 (2007)
Issue (Month): 29 ()
Pages: 1-8
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Handle: RePEc:ebl:ecbull:v:6:y:2007:i:29:p:1-8Contact details of provider: Postal: Economics Bulletin, Department of Economics, 414 Calhoun Hall, Vanderbilt University, Nashville TN 37235, USA Phone: 615-322-2920 Fax: 615-343-8495 Email: Web page: http://www.economicsbulletin.com
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Keywords: central bank ; Foreign exchange intervention ; inflation targeting ; Other versions of this item:
Find related papers by JEL classification: F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance F3 - International Economics - - International Finance
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
Lucio Sarno & Mark P. Taylor, 2001.
"Official Intervention in the Foreign Exchange Market: Is It Effective and, If So, How Does It Work? ,"
Journal of Economic Literature ,
American Economic Association, vol. 39(3), pages 839-868, September.
[Downloadable!] (restricted)
Other versions: Kim, Suk-Joong & Sheen, Jeffrey, 2002.
"The determinants of foreign exchange intervention by central banks: evidence from Australia ,"
Journal of International Money and Finance ,
Elsevier, vol. 21(5), pages 619-649, October.
[Downloadable!] (restricted)
Other versions: Ian Babetskii & Balázs Égert, 2005.
"Equilibrium Exchange Rate in the Czech Republic: How Good is the Czech BEER? ,"
Czech Journal of Economics and Finance (Finance a uver) ,
Charles University Prague, Faculty of Social Sciences, vol. 55(5-6), pages 232-252, May.
[Downloadable!]
Other versions: Christopher J. Neely, 2002.
"The temporal pattern of trading rule returns and central bank intervention: intervention does not generate technical trading rule profits ,"
Working Papers
2000-018, Federal Reserve Bank of St. Louis.
[Downloadable!]
Baillie, Richard T. & Osterberg, William P., 1997.
"Why do central banks intervene? ,"
Journal of International Money and Finance ,
Elsevier, vol. 16(6), pages 909-919, December.
[Downloadable!] (restricted)
Jesus Crespo-Cuaresma & Jarko Fidrmuc & Ronald MacDonald, 2005.
"The monetary approach to exchange rates in the CEECs ,"
The Economics of Transition ,
The European Bank for Reconstruction and Development, vol. 13(2), pages 395-416, 04.
[Downloadable!] (restricted)
Other versions:
Jesús Crespo-Cuaresma & Jarko Fidrmuc & Ronald McDonald, 2004.
"The monetary approach to exchange rates in the CEECs ,"
Macroeconomics
0401013, EconWPA.
[Downloadable!] Crespo-Cuaresma, Jesús & Fidrmuc, Jarko & McDonald, Ronald, 2003.
"The monetary approach to exchange rates in the CEECs ,"
BOFIT Discussion Papers
14/2003, Bank of Finland, Institute for Economies in Transition.
[Downloadable!] Almekinders, Geert J & Eijffinger, Sylvester C W, 1994.
"Daily Bundesbank and Federal Reserve Interventions: Are They a Reaction to Changes in the Level and Volatility of the DM/$-Rate? ,"
Empirical Economics ,
Springer, vol. 19(1), pages 111-30.
Ito, Takatoshi & Yabu, Tomoyoshi, 2007.
"What prompts Japan to intervene in the Forex market? A new approach to a reaction function ,"
Journal of International Money and Finance ,
Elsevier, vol. 26(2), pages 193-212, March.
[Downloadable!] (restricted)
Other versions: Viktor Kotlan & David Navratil, 2003.
"Inflation Targeting as a Stabilisation Tool: Its Design and Performance in the Czech Republic ,"
Macroeconomics
0310006, EconWPA.
[Downloadable!]
Almekinders, Geert J. & Eijffinger, Sylvester C. W., 1996.
"A friction model of daily Bundesbank and Federal Reserve intervention ,"
Journal of Banking & Finance ,
Elsevier, vol. 20(8), pages 1365-1380, September.
[Downloadable!] (restricted)
Tomas Holub, 2004.
"Foreign Exchange Interventions Under Inflation Targeting: The Czech Experience ,"
Research and Policy Notes
2004/01, Czech National Bank, Research Department.
[Downloadable!]
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Ian Babetskii & Ales Bulir & Fabrizio Coricelli & Jan Filacek & Michal Franta & Roman Horvath & Branislav Saxa & Katerina Smidkova, 2008.
"CNB Economic Research Bulletin: Ten years of inflation targeting ,"
Occasional Publications - Edited Volumes ,
Czech National Bank, Research Department,
edition 1, volume 6, number rb06/1 edited by Ian Babetskii & Katerina Smidkova.
[Downloadable!]
Alena Bicakova & Kamil Dybczak & Ales Krejdl & Jiri Slacalek & Michal Slavik, 2007.
"CNB Economic Research Bulletin: Fiscal policy and its sustainability ,"
Occasional Publications - Edited Volumes ,
Czech National Bank, Research Department,
edition 2, volume 5, number rb05/2 edited by Ian Babetskii & Vladimir Bezdek.
[Downloadable!]
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