The choice of an exchange rate arrangement affects the volatility of the exchange rate: higher flexibility goes ahead … with increasing volatility and vice versa (Flood and Rose 1995, 1999). We investigate the exchange rate volatility of six …-model (Bollerslev 1986) and the Markov Switching Model (Hamilton 1989). We discover switches between high and low volatility regimes …

volatility at the turn of the millennium when Japanese foreign exchange intervention started to remain unsterilized …

Excessive exchange rate volatility has a deleterious effect on international financial flows, external trade … exchange rate volatility through intervention in the foreign exchange market. This article investigates the effectiveness of … exchange rate levels but also reduces the exchange rate volatility. It is also found that the short-term interest rate and the …