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http://hdl.handle.net/10419/19636
  

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dc.contributor.authorReitz, Stefanen_US
dc.contributor.authorTaylor, Mark P.en_US
dc.date.accessioned2009-01-28T16:01:38Z-
dc.date.available2009-01-28T16:01:38Z-
dc.date.issued2006en_US
dc.identifier.urihttp://hdl.handle.net/10419/19636-
dc.description.abstractThe coordination channel has been proposed as a means by which foreign exchange market intervention may be effective, in addition to the traditional portfolio balance and signaling channels. If strong and persistent misalignments of the exchange rate are caused by non-fundamental influences, such that a return to equilibrium is hampered by a coordination failure among fundamentals-based traders, then central bank intervention may act as a coordinating signal, encouraging stabilizing speculators to re-enter the market at the same time. We develop this idea in the framework of a simple microstructural model of exchange rate movements, which we then estimate using daily data on the dollar-mark exchange rate and on Federal Reserve and Bundesbank intervention operations. The results are supportive of the existence of a coordination channel of intervention effectiveness.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank 2006,08en_US
dc.subject.jelC10en_US
dc.subject.jelF41en_US
dc.subject.jelF31en_US
dc.subject.ddc330en_US
dc.subject.keywordforeign exchange interventionen_US
dc.subject.keywordcoordination channelen_US
dc.subject.keywordmarket microstructureen_US
dc.subject.keywordnonlinear mean reversionen_US
dc.subject.stwWechselkurspolitiken_US
dc.subject.stwInternationale wirtschaftspolitische Koordinationen_US
dc.subject.stwDevisenspekulationen_US
dc.subject.stwDevisenmarkten_US
dc.subject.stwMikrostrukturanalyseen_US
dc.subject.stwSch├Ątzungen_US
dc.subject.stwTheorieen_US
dc.subject.stwDeutschlanden_US
dc.subject.stwUSAen_US
dc.titleThe coordination channel of foreign exchange intervention: a nonlinear microstructural analysisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn51039289Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:bubdp1:4245-
Appears in Collections:Discussion Paper Series 1: Economic Studies, Deutsche Bundesbank

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