IDEAS home Printed from https://ideas.repec.org/p/not/notecp/08-11.html
   My bibliography  Save this paper

In What Sense Can Intervention Reduce Exchange Rate Volatility?

Author

Listed:
  • Michael Bleaney
  • Manuela Francisc

Abstract

Can pegging reduce real as well as nominal, and multilateral as well as bilateral exchange rate volatility? We investigate this issue using monthly data for 139 countries from January 1990 to June 2006. We use the IMF regime classification system, because this closely reflects the form of governments’ exchange rate commitments. We find that both nominal and real volatility against the anchor currency increase steadily with regime flexibility. Real bilateral volatility against non-anchor currencies and real effective exchange rate volatility are significantly higher under independent floats, but are otherwise insensitive to the exchange rate regime.

Suggested Citation

  • Michael Bleaney & Manuela Francisc, 2008. "In What Sense Can Intervention Reduce Exchange Rate Volatility?," Discussion Papers 08/11, University of Nottingham, School of Economics.
    • Handle: RePEc:not:notecp:08/11
    as

    Download full text from publisher

    File URL: https://www.nottingham.ac.uk/economics/documents/discussion-papers/08-11.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:not:notecp:08/11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/denotuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.