- A very good introduction to exchange-market operations in developing and emerging market economies is: Canales-Kriljenko (2003, 2004) and Canales-Kriljenko et al. (2003). This section drew heavily on these articles. See also the papers in Bank for International Settlements (2005). These sources also provide many useful references.
Paper not yet in RePEc: Add citation now
Aizenman, J., Jinjarak, Y. and Park, D. 2010. “International Reserves and Swap Lines: Sustitutes or Compliments?†National Bureau of Economic Research Working Paper 15804 (March) Aizenman, Joshua and Pasricha, Gurnain Kuar. 2009. “Selective Swap Arrangements and the Global Financial Crisis: Analysis and Interpretation,†National Bureau of Economic Research Working Paper 14821 (March).
- As noted in chapter 4, the United States bought foreign exchange to build a portfolio of foreign-exchange reserves in the late 1970s and early 1980s. We calculated the trade-weighted appreciation using J.P. Morgan’s real, broad, effective exchange-rate index. China’s currency is the renminbi, but its currency unit is the yuan, whose symbol is . The Peoples Bank also raised reserve requirements and imposed direct controls on bank lending to control inflation.
Paper not yet in RePEc: Add citation now
Auer, Raphael and Kraenzlin, Sébastian. 2011. “International Liquidity Provision during the Financial Crisis: A View from Switzerland,†Federal Reserve Bank of St. Louis, Review 93(6): 409 – 417.
Bank for International Settlements. 2005. “Foreign Exchange Market Intervention in Emerging Markets: Motives, Techniques, and Implications.†Bank for International Settlements Papers No. 24 (May).
Bonser-Neal, C., Roley, V. V. and Sellon, G. H. Jr. 1998. Monetary Policy Actions, Intervention, and Exchange Rates: A Reexamination of the Empirical Relationships Using Federal Funds Rate Target Data. Journal of Business, 71(2): 147-177.
Bordo, M. D., Humpage O.F. and Schwarz A.J. 2012. “The Federal Reserve as an Informed Foreign Exchange Trader: 1973 – 1995,†International Journal and Central Banking 8(1): 1 – 29.
Canales-Kriljenko, Jorge Iván. 2003. “Foreign Exchange Intervention in Developing and Transition Economies: Results of a Survey,†International Monetary Fund Working Paper WP/03/99 Canales-Kriljenko, Jorge Iván. 2004. “Foreign Exchange Market Organization in Selected Developing and Transition Economies: Evidence from a Survey,†International Monetary Fund Working Paper WP/04/4 Canales-Kriljenko, Jorge Iván, Guimariães, and Karacadağ, Cem. 2003. “Official Intervention in the Foreign Exchange Market: Elements of Best Practice,†International Monetary Fund Working Paper WP/03/152 Chaboud, A. P., and Humpage, O. F. 2005. “An Assessment of the Impact of Japanese ForeignExchange Intervention: 1991 – 2004.†Board of Governors of the Federal Reserve System, International Finance Discussion Papers No. 824.
- ENDNOTES Dollar amounts of Japanese intervention are from Chaboud and Humpage (2005) Studies of Japanese intervention include Fatum and Hutchinson (2003), Frenkel, Pierdzioch, and Stadtmann (2005), Galati, Melick, and Micu (2005). Humpage and Ragnartz (2005) apply the same methodology as Chaboud and Humpage (2005) to Swedish intervention.
Paper not yet in RePEc: Add citation now
Fatum, R. and Hutchinson, M. 2003. Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan. National Bureau of Economic Research Working Papers No. 9648.
- Fleming, M. J. and Klagge, N. J. 2010. The Federal Reserve’s Foreign Exchange Swap Lines, Federal Reserve Bank of New York Current Issues in Economics and Finance. 16(4) April.
Paper not yet in RePEc: Add citation now
- Following the 11 September 2001 terrorist attacks, the System also instituted similar swap lines with the European Central Bank ($50 billion) and the Bank of England ($30 billion). At that time, the System expanded its existing swap with the Bank of Canada to $10 billion. The lines expired after 30 days. The European Central Bank drew $23.4 billion on its line and repaid the amount on 17 September 2001. The Bank of Canada and the Bank of England did not draw on the lines. See Kos (2001, p. 761).
Paper not yet in RePEc: Add citation now
Frenkel, M., Pierdzioch, M. and Stadtmann, G. 2005. “The Effects of Japanese Foreign Exchange Market Interventions on the Yen/US Dollar Exchange Rate Volatility,†International Review of Economics and Finance 14(1):27 – 39.
Galati, G. Melick, W. and Micu, M. 2005. Foreign Exchange Market Intervention and Expectations: The Dollar/Yen Exchange rate. Journal of International Money and Finance. 24(6): 982 – 1011.
Goldberg, L. S., Kennedy, C., and Miu, J. 2010. “Central Bank Dollar Swap Lines and Overseas Dollar Funding Costs,†Federal Reserve Bank of New York Staff Report, No. 429 (February).
Humpage, O. and Ragnartz, J. 2005. Swedish Intervention and the Krona Float, 1993 – 2002. Federal Reserve Bank of Cleveland Working Paper 05-14.
Humpage, O. F. 1999. U.S. Intervention: Assessing the Probability of Success. Journal of Money Credit and Banking 31 (4):731 – 747.
Ito, T. 2003. “Is Foreign Exchange Intervention Effective?: The Japanese Experiences in the 1990s.†in Paul Mizen (ed.) Monetary History, Exchange Rates, and Financial Markets, Essays in Honour of Charles Goodhart, (2) Cheltenhan, U.K.: Edward Elgar.
- Ito, T. 2005. “Interventions and Japanese Economic Recovery.†International Economics and Economic Policy 2(2-3): 219-239.
Paper not yet in RePEc: Add citation now
Ito, T. and Yabu, T. 2007. “What Prompts Japan to Intervene in the Forex Market? A New Approach to a Reaction Function,†Journal of International Money and Finance 26(2): 193 – 212.
- Kos, D. 2001. “Treasury and Federal Reserve Foreign Exchange Operations,†Federal Reserve Bulletin, Board of Governors of the Federal Reserve System: Washington, D. C. 87(12): 757 - 762.
Paper not yet in RePEc: Add citation now
Lardy, N. 2008. “Financial Repression in China,†Peterson Institution Policy Brief, No. PB08-8 Moessner, R. and Allen, W. A. 2010. “Central Bank Co-operation and International Liquidity in The Financial Crisis of 2008-9,†Bank for International Settlements Working Papers No. 310, (May).
- McCallum, B. T. 2003. “Japanese Monetary Policy, 1991-2001.†Federal Reserve Bank of Richmond Economic Quarterly 89 (1): 1-31.
Paper not yet in RePEc: Add citation now
McGuire, P. and von Peter, G. 2009. “The US Dollar Shortage in Global Banking,†Bank for International Settlements Quarterly Review (March) 47 – 63.
- Minutes of the Federal Open Market Committee, Board of Governors of the Federal Reserve System: Washington, D. C. 11 December 2007.
Paper not yet in RePEc: Add citation now
Mohanty, M. S. and Turner, P. 2005. “Intervention: What Are The Domestic Consequences?†Bank for International Settlements Papers #24 (May) 56 – 81.
- Morano, R. 2005. “Motives for Intervention,†Bank for International Settlements Papers #24 (May) 56 – 81.
Paper not yet in RePEc: Add citation now
Neely, C. J. 2011. Foreign Exchange Intervention in an Era of Restraint,†Federal Reserve Bank of St. Louis, Review 93(6): 302 – 324.
Obstfeld, M., Shambaugh, J. C. and Taylor, A. M. 2009. “Financial Instability, Reserves, and Central Bank Swap Lines in the Panic of 2008,†National Bureau of Economic Research Working Paper 14826. (March).
- On the concern for the longer-term outlook for inflation see Swiss National Bank (2010. p. 42).
Paper not yet in RePEc: Add citation now
- On this aspect of the swap lines, see especially Goldberg, et al. (2010). An Overnight Index Swap (OIS) is an interest-rate swap where the period floating rate in the swap is equal to a geometric average of the federal funds rate. The OIS rate refers to the floating rate portion of the swap. Hence the OIS rate is related to the average federal funds rate over the period of the obligation.
Paper not yet in RePEc: Add citation now
- Our discussion of foreign banks’ balance sheets draws on: McQuire and von Peter (2009), and Moessner and Allen (2010). See also Fleming and Klagge (2010) and Goldberg, et al. (2010).
Paper not yet in RePEc: Add citation now
Ouyang, A.Y., Rajan, R.S. and Willete, T.D. 2010. “China as a Reserve Sink: The Evidence from Offset and Sterilization Coefficients,†Journal of International Money and Finance. 29: 951 – 972.
Rich, G. 2000. “Monetary Policy without Central Bank Money: A Swiss Perspective,†International Finance. 3(3): 439 – 469.
- Swiss National Bank. 2009. Quarterly Assessment. 12 March Swiss National Bank. 2010. Quarterly Bulletin. June. 28(2) Swiss National Bank. 2011. Communications ( 3 August).
Paper not yet in RePEc: Add citation now
- There is not much empirical evidence on this equivalence issues. Our conclusion stems primarily from Bonser-Neal, et al. (1998), which investigated U.S. monetary policy and Humpage (1999), which looked at U.S. intervention policy.
Paper not yet in RePEc: Add citation now