Size Matters: Central Bank Interventions on the Yen/Dollar Exchange Rate

Reference : Size Matters: Central Bank Interventions on the Yen/Dollar Exchange Rate


	Document type :	Scientific journals : Article
	Discipline(s) :	Business & economic sciences : International economics
	To cite this reference:	http://hdl.handle.net/10993/7650

Title :	Size Matters: Central Bank Interventions on the Yen/Dollar Exchange Rate
Language :	English
Author, co-author :	Beine, Michel [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
	Szafarz, Ariane [Centre Emile Bernheim, Bruxelles]
Publication date :	2007
Journal title :	Cahiers Economiques de Bruxelles
Publisher :	Editions Du Dulbea
Volume :	49
Issue/season :	1
Pages :	5-36
Peer reviewed :	Yes
ISSN :	0008-0195
Keywords :	[en] Central bank intervention ; Signaling channel ; Foreign exchange market ; Exchange rates
Abstract :	[en] This paper explores the effects of the recent interventions of the Bank of Japan on the level and volatility of the yen/dollar exchange rate. A special attention is devoted to the prominent features affecting the signal conveyed by these interventions. The results show a clear duality: small unilateral interventions are counterproductive while large and isolated ones influence the FX market in the desired directions. It is also found that the perverse effect is avoided through coordinated operations.
Target :	Researchers ; Professionals ; Students ; General public ; Others
Permalink :	http://hdl.handle.net/10993/7650

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