Foreign Exchange Intervention; A Shield Against Appreciation Winds?
This paper examines foreign exchange intervention practices and their effectiveness using a new qualitative and quantitative database for a panel of 15 economies covering 2004 - 10, with special focus on Latin America. Qualitatively, it examines institutional aspects such as declared motives, instruments employed, the use of rules versus discretion, and the degree of transparency. Quantitatively, it assesses the effectiveness of sterilized interventions in influencing the exchange rate using a two-stage IV-panel data approach to overcome endogeneity bias. Results suggest that interventions slow the pace of appreciation, but the effects decrease rapidly with the degree of capital account openness. At the same time, interventions are more effective in the context of already ?overvalued' exchange rates.
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- Mark P. Taylor & Lucio Sarno, 2001.
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"Effects of Foreign Exchange Intervention Under Public Information: the Chilean Case,"
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- Matías Tapia & Andrea Tokman, 2004. "Effects of Foreign Exchange Intervention under Public Information: The Chilean Case," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 215-256, January.
- Hernán Rincón & Jorge Toro, .
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Borradores de Economia
625, Banco de la Republica de Colombia.
- Hernán Rincón & Jorge Toro, 2010. "Are Capital Controls and Central Bank Intervention Effective?," BORRADORES DE ECONOMIA 007622, BANCO DE LA REPÚBLICA.
- Jonathan David Ostry & Atish R. Ghosh & Karl F Habermeier & Luc Laeven & Marcos d Chamon & Mahvash S Qureshi & Annamaria Kokenyne, 2011.
"Managing Capital Inflows; What Tools to Use?,"
IMF Staff Discussion Notes
11/06, International Monetary Fund.
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