Advanced Search
MyIDEAS: Login to save this article or follow this journal

Effectiveness of intervention in a small emerging market: an event study approach

Contents:

Author Info

  • Hyginus Leon
  • Oral H. Williams

Abstract

This article addresses the effectiveness of intervention using daily data from a small open economy for which intervention constituted an integral part of policy making. A matched-sample test of equality of means before and after intervention events, shows that the sterilized interventions by the central bank were effective for both purchases and sales of US dollars, but with associated fiscal costs. These results, which are robust to alternative event-window definitions and to alternative criteria for measuring ‘success’, suggest that the authorities were successful in keeping the exchange rate within a ‘target’ corridor. With many small emerging market economies seeking to balance the twin objectives of maintaining competitiveness while containing imported inflation, these results present an interesting case study which suggests that intervention can be an appropriate policy tool in some small open and emerging market economies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://hdl.handle.net/10.1080/09603107.2012.681024
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Financial Economics.

Volume (Year): 22 (2012)
Issue (Month): 21 (November)
Pages: 1811-1820

as in new window
Handle: RePEc:taf:apfiec:v:22:y:2012:i:21:p:1811-1820

Contact details of provider:
Web page: http://www.tandfonline.com/RAFE20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAFE20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:apfiec:v:22:y:2012:i:21:p:1811-1820. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.