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Central bank authorities’ beliefs about foreign exchange intervention

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  • Christopher J. Neely

Abstract

This paper presents the results of a survey of monetary authorities with respect to foreign exchange intervention. The survey offers evidence on new issues that would otherwise be difficult to investigate, such as response times, non-foreign exchange factors in intervention and profitability. The survey also reveals new evidence on previously studied issues, such as channels of effectiveness. Respondents disagreed with predominant views on intervention and volatility and common arguments against intervention. Exchange rate regimes explain central bank beliefs about important aspects of intervention, including factors that lead to detection of secret interventions and the potential profitability of intervention. ; Earlier title: Authorities' beliefs about foreign exchange intervention: getting back under the hood

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Bibliographic Info

Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2006-045.

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Date of creation: 2007
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Publication status: Published in Journal of International Money and Finance, February 2008, 27(1), pp. 1-25
Handle: RePEc:fip:fedlwp:2006-045

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Keywords: Foreign exchange ; Banks and banking; Central;

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