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 Economic and Social Research Institute (ESRI) in its series Papers with number WP442.
Date of creation: Oct 2012
Date of revision:
Other versions of this item:
- Petra Gerlach-Kristen & Robert N McCauley, 2012. "Currency intervention and the global portfolio balance effect: Japanese lessons," BIS Working Papers 389, Bank for International Settlements.
- NEP-ALL-2013-01-19 (All new papers)
- NEP-CBA-2013-01-19 (Central Banking)
- NEP-IFN-2013-01-19 (International Finance)
- NEP-MON-2013-01-19 (Monetary Economics)
- NEP-OPM-2013-01-19 (Open Economy Macroeconomics)
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