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Detecting persistent one‐sided intervention in foreign exchange markets: A simple test

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  • Shiu‐Sheng Chen
  • Jen‐Kuan Wang

Abstract

This paper examines currency manipulation policies in foreign exchange markets. In particular, we focus on whether a country has implemented one‐sided interventions that mostly lean against the appreciation wind in foreign exchange markets. Using quarterly data from 1998:Q1 to 2017:Q2 for 10 emerging countries, we find that China, Singapore, and Taiwan engaged in one‐sided interventions. A further rolling regression analysis shows some moderate evidence that Taiwan is the only country conducting one‐sided interventions on a continuing basis.

Suggested Citation

  • Shiu‐Sheng Chen & Jen‐Kuan Wang, 2022. "Detecting persistent one‐sided intervention in foreign exchange markets: A simple test," International Finance, Wiley Blackwell, vol. 25(1), pages 23-45, April.
    • Handle: RePEc:bla:intfin:v:25:y:2022:i:1:p:23-45
    DOI: 10.1111/infi.12401
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    References listed on IDEAS

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