Currency intervention and the global portfolio balance effect: Japanese lessons
This paper shows that the Japanese foreign exchange interventions in 2003/04 seem to have lowered long-term interest rates in a wide range of countries, including Japan. It seems that this decline was triggered by the investment of the intervention proceeds in US bonds and that a global portfolio balance effect spread the resulting decline in US yields to other bond markets, thus easing global monetary conditions.
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- Watanabe, Tsutomu & Yabu, Tomoyoshi, 2013.
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2004-48, Board of Governors of the Federal Reserve System (U.S.).
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- Serge Jeanneau & Camilo E Tovar, 2006. "Domestic bond markets in Latin America: achievements and challenges," BIS Quarterly Review, Bank for International Settlements, June.
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"An analysis of recent studies of the effect of foreign exchange intervention,"
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