EBSLG

 

 
European Business Schools Librarian's Group
Home About Series Subject/JEL codes Advanced Search
Kiel Institute for World Economics Kiel Working Papers, Kiel Institute for World Economics

No 1765:
FX Intervention in the Yen-US Dollar Market: A Coordination Channel Perspective

Mark P. Taylor Stefan Reitz

Abstract: The coordination channel has recently been established as an additional means by which foreign exchange market intervention may be effective. It is conjectured that strong and persistent misalignments of the exchange rate are caused by a coordination failure among fundamentals-based traders. In such situations official intervention may act as a coordinating signal, encouraging traders to engage in stabilizing speculation. We apply the framework developed in Reitz and Taylor (2008) to daily data on the yen-US dollar exchange rate and on Federal Reserve and Japanese Ministry of Finance intervention operations. The results provide further support for the coordination channel of intervention effectiveness

Keywords: foreign exchange intervention, coordination channel, STR-GARCH model; (follow links to similar papers)

JEL-Codes: C10,; F31,; F41; (follow links to similar papers)

27 pages, April 2012

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Downloadable files:

KWP_1765.pdf    PDF-file
Download Statistics


Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design Joakim Ekebom

Handle: RePEc:kie:kieliw:1765 This page was generated on 2015-03-29 21:03:35