Filardo, Andrew; Gelos, Gaston; McGregor, Thomas - 2022
This paper develops a new approach for exploring the effectiveness of foreign currency intervention, focusing on real … equilibrium real exchange rate at short-, medium-, and low frequencies. Next, it assesses the effectiveness of FX intervention … data—i.e., at policy-relevant horizons. The effectiveness of intervention rises with the size of the misalignment, and with …