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The Influence of Actual and Unrequited Interventions Author info | Abstract | Publisher info | Download info | Related research | Statistics Kathryn M.E. Dominguez
Freyan Panthaki
Intervention operations are used by governments to manage their exchange rates but officials rarely confirm their presence in the market, leading inevitably to erroneous reports in the financial press. There are also reports of what we term, unrequited interventions, interventions that the market expects but do not materialize. In this paper we examine the effects of various types of intervention news on intra-day exchange rate behavior. We find that unrequited interventions have a statistically significant influence on returns, volatility and order flow, suggesting that the expectation of intervention, even when governments do not intervene, can affect currency values.
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Date of creation: Mar 2007Date of revision:
Publication status: published as International Journal of Finance and Economics, 12, 2007, 171-200.Handle: RePEc:nbr:nberwo:12953Note: IFMContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
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Find related papers by JEL classification: F3 - International Economics - - International Finance F31 - International Economics - - International Finance - - - Foreign Exchange G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
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references Cited by : (explanations , 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.)
Michael Melvin & Lukas Menkhoff & Maik Schmeling, 2008.
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Alan S. Blinder & Michael Ehrmann & Marcel Fratzscher & Jakob De Haan & David-Jan Jansen, 2008.
"Central Bank communication and monetary policy - a survey of theory and evidence ,"
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