Looking at the period of January 1987 to July 1995, this study shows that the monetary authority in Indonesia had actively intervened the foreign exchange market to ensure the stability of rupiah real exchange rate. Strong evidences of real exchange rate targeting were even more significant...

The key objective of this study is to show that two potential shortcomings of the Determinant of Change in Covariance (DCC) matrix procedure of Rigobon (2003), namely with the arbitrary determination of the windows, i.e. tranquil and crisis periods and the violation of its heteroscedasticity...