The Effectiveness of the Interventions of the Swiss National Bank � An Event-Study Analysis
AbstractWe use the event-study methodology to analyze the effectiveness of the foreign exchange market interventions conducted by the Swiss National Bank (SNB) during the period from 1986 through 1995. We find some evidence that the interventions of the SNB had an impact on exchange rate dynamics. The significance of this e®ect, however, depends on the direction of intervention. In general, the evidence suggests that the interventions of the SNB to strengthen the Swiss franc were more e®ective than its interventions to weaken the Swiss franc. We also find that the results of the tests for the e®ectiveness of the interventions of the SNB depend upon the length of the pre- and post-event window analyzed.
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1160.
Length: 20 pages
Date of creation: Apr 2003
Date of revision:
Foreign exchange market; Central bank intervention; Swiss National Bank;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-04-04 (All new papers)
- NEP-FIN-2004-04-04 (Finance)
- NEP-IFN-2004-04-04 (International Finance)
- NEP-MAC-2004-04-04 (Macroeconomics)
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