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Intervention as information: a survey

Author

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  • Richard T. Baillie
  • Owen F. Humpage
  • William P. Osterberg

Abstract

Research has generally failed to find reliable connections between official exchange-market interventions and exchange rates that are consistent with either a monetary or a portfolio-balance theory of exchange-rate determination. Recently economists have suggested that intervention might sometimes influence exchange rates through its effects on agents’ expectations. This survey discusses newer research that analyzes informational aspects of intervention.

Suggested Citation

  • Richard T. Baillie & Owen F. Humpage & William P. Osterberg, 1999. "Intervention as information: a survey," Working Paper 9918, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:9918
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    References listed on IDEAS

    as
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    Cited by:

    1. Jorge I Canales Kriljenko, 2003. "Foreign Exchange Intervention in Developing and Transition Economies; Results of a Survey," IMF Working Papers 03/95, International Monetary Fund.

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    Keywords

    Foreign exchange - Law and legislation;

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