This paper analyses the impact of central bank interven-tions in the inflation targeting regime. The results of empirical stud-ies in this paper show if there is a shock of the exchange rate, which would lead to depreciation of the exchange rate, a central bank may decide to mush instability on...

This paper studies the impacts of foreign exchange reserves intervention under the economic structures of China that feature capital controls, managed floating exchange rate and partially sterilized intervention. The central bank transacts government bonds to sterilely intervene the foreign...

China has experienced a large increase in its foreign exchange reserves since 2001, due to a continuous inflow of capital and the commitment to maintain a fixed rate against the dollar initially and then a crawling peg exchange rate regime. Among other things, the accumulation of foreign assets...