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Using a new equity price-based measure of the global financial cycle, this paper evaluates the relative importance of global financial shocks for quarterly equity returns and output growths in a large sample of advanced and emerging economies, as well as in South Korea and China--two countries...
Persistent link: https://www.econbiz.de/10014239128
One of the great unknowns in international finance is the process by which new information influences exchange rate behavior. This paper focuses on one important source of information to the foreign exchange markets, the intervention operations of the G-3 central banks. Previous studies using...
Persistent link: https://www.econbiz.de/10013132797
interest to policymakers at the time of adoption. We examine the political economy of Japan's adoption of the gold standard in … contrast to previous studies examining bond yields, we find little evidence that joining the gold standard reduced Japan … policymakers suggested, we find that membership in the gold standard increased Japan's exports by lowering transactions costs and …
Persistent link: https://www.econbiz.de/10013151810
Many emerging market economies have relied on foreign exchange intervention (FXI) in response to gross capital inflows. In this paper, we study whether FXI has been an effective tool to dampen the effects of these inflows on the exchange rate. To deal with endogeneity issues, we look at the...
Persistent link: https://www.econbiz.de/10013018303
Received wisdom posits that sterilized foreign exchange intervention can be effective by altering the currency composition of assets held by the public. This paper proposes an alternative channel: sterilized intervention may (or may not) have real effects because it changes the net credit...
Persistent link: https://www.econbiz.de/10012922986
Since the September 1985 Plaza Hotel announcement by the Group of Five industrial countries, a substantial realignment of exchange rates has been achieved. At the same time, foreign exchange market intervention, much of it concerted and much of it sterilized, has been undertaken on a scale not...
Persistent link: https://www.econbiz.de/10013215363
This paper analyzes and estimates the reaction function of the Japanese monetary authorities in deciding when to intervene in the foreign exchange (forex) markets, using daily Japanese intervention data from April 1, 1991 to December 31, 2002. This paper is the first in estimating the reaction...
Persistent link: https://www.econbiz.de/10013217948
We review the conduct and scale of official intervention by monetary authorities in the U.S.A., Japan, and West Germany …
Persistent link: https://www.econbiz.de/10013236791
This paper is a recap of G3 exchange rate relationships since the collapse of Bretton Woods and an analysis of recent proposals for changing the way the G3 countries currently conduct exchange rate policy. We seek to understand these proposals in the context of the status quo monetary policies...
Persistent link: https://www.econbiz.de/10013323458
timings and amounts for Japan, the US, and Germany. Fourth, we present the episode of international coordination represented …
Persistent link: https://www.econbiz.de/10013323835