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, instru...

Полное описание

Библиографические подробности
Главный автор: Adler, Gustavo
Другие авторы: Tovar Mora, Camilo
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2011.
Серии:IMF Working Papers; Working Paper ; No. 2011/165
Online-ссылка:Full text available on IMF
Описание
Итог: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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Объем:1 online resource (29 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students