Central Bank Intervention And The Volatility Of Foreign Exchange Rates
DOWNLOAD
Download Central Bank Intervention And The Volatility Of Foreign Exchange Rates PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Central Bank Intervention And The Volatility Of Foreign Exchange Rates book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page
Central Bank Intervention And Exchange Rate Volatility
DOWNLOAD
Author : Suk-Joong Kim
language : en
Publisher:
Release Date : 1999
Central Bank Intervention And Exchange Rate Volatility written by Suk-Joong Kim and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1999 with Banks and banking, Central categories.
Central Bank Intervention And The Volatility Of Foreign Exchange Rates
DOWNLOAD
Author : Catherine A. Bonser-Neal
language : en
Publisher:
Release Date : 1995
Central Bank Intervention And The Volatility Of Foreign Exchange Rates written by Catherine A. Bonser-Neal and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1995 with categories.
Foreign Exchange Intervention Rules For Central Banks A Risk Based Framework
DOWNLOAD
Author : Romain Lafarguette
language : en
Publisher: International Monetary Fund
Release Date : 2021-02-12
Foreign Exchange Intervention Rules For Central Banks A Risk Based Framework written by Romain Lafarguette and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2021-02-12 with Business & Economics categories.
This paper presents a rule for foreign exchange interventions (FXI), designed to preserve financial stability in floating exchange rate arrangements. The FXI rule addresses a market failure: the absence of hedging solution for tail exchange rate risk in the market (i.e. high volatility). Market impairment or overshoot of exchange rate between two equilibria could generate high volatility and threaten financial stability due to unhedged exposure to exchange rate risk in the economy. The rule uses the concept of Value at Risk (VaR) to define FXI triggers. While it provides to the market a hedge against tail risk, the rule allows the exchange rate to smoothly adjust to new equilibria. In addition, the rule is budget neutral over the medium term, encourages a prudent risk management in the market, and is more resilient to speculative attacks than other rules, such as fixed-volatility rules. The empirical methodology is backtested on Banco Mexico’s FXIs data between 2008 and 2016.
Foreign Exchange Intervention As A Monetary Policy Instrument
DOWNLOAD
Author : Felix Hüfner
language : en
Publisher: Springer Science & Business Media
Release Date : 2012-12-06
Foreign Exchange Intervention As A Monetary Policy Instrument written by Felix Hüfner and has been published by Springer Science & Business Media this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-12-06 with Business & Economics categories.
Foreign exchange intervention is frequently being used by central banks in countries which have a floating exchange rate. Most theoretical monetary policy models, however, do not take this phenomenon into account. This book contributes to close this gap between theory and practice by interpreting foreign exchange intervention as an additional monetary policy instrument for inflation targeting central banks. In-depth empirical analyses of the foreign exchange operations and interest rate policy of five inflation targeting countries (Australia, Canada, New Zealand, Sweden and the United Kingdom) demonstrate how foreign exchange intervention is used in practice.
Central Bank Participation In Currency Options Markets
DOWNLOAD
Author : Mr.Peter Breuer
language : en
Publisher: International Monetary Fund
Release Date : 1999-10-01
Central Bank Participation In Currency Options Markets written by Mr.Peter Breuer and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 1999-10-01 with Business & Economics categories.
This paper analyzes whether and how central banks can use currency options to lower exchange rate volatility and maintain (implicit) target zones in foreign exchange markets. It argues that selling rather than buying options will result in market makers dynamically hedging their long option exposure in a stabilizing manner, consistent with the first objective. Selling a “strangle” allows a central bank to increase the credibility of its commitment to a target zone, and could have a lower expected cost than spot market interventions. However, this strategy also exposes the central bank to an unlimited loss potential.
The Determinants Of Foreign Exchange Intervention By Central Banks
DOWNLOAD
Author : Suk-Joong Kim
language : en
Publisher:
Release Date : 1999
The Determinants Of Foreign Exchange Intervention By Central Banks written by Suk-Joong Kim and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1999 with Banks and banking, Central categories.
Foreign Exchange Intervention Under Policy Uncertainty
DOWNLOAD
Author : Gustavo Adler
language : en
Publisher: International Monetary Fund
Release Date : 2016-03-17
Foreign Exchange Intervention Under Policy Uncertainty written by Gustavo Adler and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2016-03-17 with Business & Economics categories.
We study the use of foreign exchange (FX) intervention as an additional policy instrument in an environment with learning, where agents infer the central bank policy rules from its policy actions. Under full information, a central bank focused on stabilizing output and inflation can achieve better outcomes by using FX intervention as an additional policy tool. Under policy uncertainty, where agents perceive that monetary policy may also have exchange rate stabilization goals, the use of FX intervention entails a trade-off, reducing output volatility while increasing inflation volatility. While having an additional policy tool is always beneficial, we find that the optimal magnitude of intervention is higher in monetary policy regimes with lower uncertainty. These results indicate that the benefits of using FX intervention as an additional stabilization tool are greater in regimes where monetary policy is credibly focused on output and inflation stabilization.
Measuring Exchange Market Pressure And Central Bank Intervention
DOWNLOAD
Author : Mikko Spolander
language : en
Publisher:
Release Date : 1999
Measuring Exchange Market Pressure And Central Bank Intervention written by Mikko Spolander and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1999 with Banks and banking categories.
Tiivistelmä.
Official Intervention In The Foreign Exchange Market
DOWNLOAD
Author : Roberto Pereira Guimarães
language : en
Publisher: International Monetary Fund
Release Date : 2003-07-01
Official Intervention In The Foreign Exchange Market written by Roberto Pereira Guimarães and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003-07-01 with Business & Economics categories.
This paper offers guidance on the operational aspects of official intervention in the foreign exchange market, particularly in developing countries with flexible exchange rate regimes. A brief survey of the literature and country experience is followed by an analysis of the objectives, timing, amount, degree of transparency, and choice of markets and counterparties in conducting intervention. The analysis highlights the difficulty of detecting exchange rate misalignments and disorderly markets, and argues in favor of parsimony in official intervention. Determining the timing and amount of intervention is a highly subjective excercise, and some degree of discretion is almost necessary, though policy rules may serve as "rules of thumb."
Central Bank Foreign Exchange Market Intervention And Option Contract Specification
DOWNLOAD
Author : Mr.Ousmene Mandeng
language : en
Publisher: International Monetary Fund
Release Date : 2003-06-01
Central Bank Foreign Exchange Market Intervention And Option Contract Specification written by Mr.Ousmene Mandeng and has been published by International Monetary Fund this book supported file pdf, txt, epub, kindle and other format this book has been release on 2003-06-01 with Business & Economics categories.
This paper aims to identify appropriate option contract specifications for effective central bank exchange market intervention. Option contract specifications determine the impact of options on the underlying asset or currency, and hence their actual effect on asset price or currency volatility and are therefore key to determining the effectiveness of option-based intervention. The paper reviews the experience of the systematic option-based foreign exchange market intervention of the Central Bank of Colombia and finds that its contract has only been moderately successful at abating exchange rate volatility, which is attributed here to sub-optimal contract specifications.