Exchange Market Pressure on the Croatian Kuna
Currency crises exert strong pressure on currencies often causing costly economic adjustment. A measure of exchange market pressure (EMP) gauges the severity of such tensions. Measuring EMP is important for monetary authorities that manage exchange rates. It is also relevant in academic research that studies currency crises. A precise EMP measure is therefore important and this paper re-examines the measurement of EMP on the Croatian kuna. It improves it by considering intervention data and thresholds that account for the EMP distribution. It also tests the robustness of weights. A discussion of the results demonstrates a modest improvement over the previous measure and concludes that the new EMP on the Croatian kuna should be used in future research.
Volume (Year): 33 (2009)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Web page: http://www.fintp.hr/Email:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ipf:finteo:v:33:y:2009:i:2:p:187-199. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martina Fabris)
If references are entirely missing, you can add them using this form.