Currency intervention and the global portfolio balance effect: Japanese lessons
AbstractThis paper shows that the Japanese foreign exchange interventions in 2003/04 seem to have lowered long-term interest rates in a wide range of countries, including Japan. It seems that this decline was triggered by the investment of the intervention proceeds in US bonds and that a global portfolio balance effect spread the resulting decline in US yields to other bond markets, thus easing global monetary conditions.
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Bibliographic InfoPaper provided by Bank for International Settlements in its series BIS Working Papers with number 389.
Length: 17 pages
Date of creation: Oct 2012
Date of revision:
Intervention; portfolio balance effect; Japan;
Other versions of this item:
- Gerlach, Petra & McCauley, Robert N. & Ueda, Kazuo, 2012. "Currency intervention and the global portfolio balance effect: Japanese lessons," Papers WP442, Economic and Social Research Institute (ESRI).
- NEP-ALL-2012-11-24 (All new papers)
- NEP-IFN-2012-11-24 (International Finance)
- NEP-MON-2012-11-24 (Monetary Economics)
- NEP-OPM-2012-11-24 (Open Economy Macroeconomics)
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.:
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