When Is Foreign Exchange Intervention Effective? Evidence from 33 Countries

Marcel Fratzscher, Oliver Gloede, Lukas Menkhoff, Lucio Sarno and Tobias Stöhr
Authors registered in the RePEc Author Service: Tobias Heidland

EconStor Open Access Articles and Book Chapters, 2019, vol. Volume11, issue 1, 132-156

Abstract: This paper examines foreign exchange intervention based on novel daily data covering 33 countries from 1995 to 2011. We find that intervention is widely used and an effective policy tool, with a suc cess rate in excess of 80 percent under some criteria. The policy works well in terms of smoothing the path of exchange rates, and in stabilizing the exchange rate in countries with narrow band regimes. Moving the level of the exchange rate in flexible regimes requires that some conditions are met, including the use of large volumes and that intervention is made public and supported via communication.

JEL-codes: E52 E58 F31 F33 O19 O24 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (33)

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Related works:
Journal Article: When Is Foreign Exchange Intervention Effective? Evidence from 33 Countries (2019)
Working Paper: When is foreign exchange intervention effective? Evidence from 33 countries (2017)
Working Paper: When Is Foreign Exchange Intervention Effective? Evidence from 33 Countries (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:261931

DOI: 10.1257/mac.20150317

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