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An analysis of recent studies of the effect of foreign exchange intervention

Listed author(s):
  • Christopher J. Neely

Two recent strands of research have contributed to our understanding of the effects of foreign exchange intervention: 1) the use of high frequency data; 2) the use of event studies to evaluate the effects of intervention. This article surveys recent empirical studies of the effect of foreign exchange intervention and analyzes the implicit assumptions and limitations of such work. After explicitly detailing such drawbacks, the paper suggests ways to better investigate the effects of intervention.

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Paper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2005-030.

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Date of creation: 2005
Publication status: Published in Federal Reserve Bank of St. Louis Review, November/December 2005, 87(6), pp. 685-717
Handle: RePEc:fip:fedlwp:2005-030
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