Since the Australian dollar was floated in December 1983, the Australian central bank (Reserve Bank of Australia) has … to December 2001, this paper examines what effects, if any, foreign exchange operations by the Reserve Bank of Australia … (RBA) have had on the level and volatility of the Australian dollar exchange rate. First, using an event study we evaluate …

Since the Australian dollar was floated in December 1983, the Australian central bank (Reserve Bank of Australia) has … to December 2001, this paper examines what effects, if any, foreign exchange operations by the Reserve Bank of Australia … (RBA) have had on the level and volatility of the Australian dollar exchange rate. First, using an event study we evaluate …

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 …