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Foreign Exchange Intervention :, A Shield Against Appreciation Winds?, Gustavo Adler, Camilo Tovar Mora

Abstract
This paper examines foreign exchange intervention practices and their effectiveness using a new qualitative and quantitative database for a panel of 15 economies covering 2004 - 10, with special focus on Latin America. Qualitatively, it examines institutional aspects such as declared motives, instruments employed, the use of rules versus discretion, and the degree of transparency. Quantitatively, it assesses the effectiveness of sterilized interventions in influencing the exchange rate using a two-stage IV-panel data approach to overcome endogeneity bias. Results suggest that interventions slow the pace of appreciation, but the effects decrease rapidly with the degree of capital account openness. At the same time, interventions are more effective in the context of already ?overvalued' exchange rates
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; Tables; Figures; 1. Global Conditions and Change in International Reserves-Selected EM/AM Economies; 2. Intervention and Bilateral Exchange Rate in Latin America; 3. Motives for Intervention; A. Frequency and Size of Interventions; 1. Stylized Facts of Foreign Exchange Purchases; B. Declared Intervention Practices; 4. Framework for Intervention; 5. How Do Latin American Countries Actually Intervene?; 6. Instruments of Intervention; 7. Daily Foreign Exchange Market Turnover?; 8. When Are Amounts of Intervention Published?
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (73 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781462302215

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