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dc.contributor.authorSchmidt, Roberten_US
dc.contributor.authorWollmershäuser, Timoen_US
dc.date.accessioned2009-01-29T14:57:20Z-
dc.date.available2009-01-29T14:57:20Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/22343-
dc.description.abstractSterilized foreign exchange market interventions are commonly dismissed by economists as an ineffective policy instrument. Nevertheless many central banks operating under independently floating exchange rates regimes are often engaged in sales and purchases of foreign exchange in order to manipulate the current value of their currencies. In this paper we argue that the skepticism of many economists can be ascribed to their orientation on fundamental-based, efficient-market exchange rate models. Given their weak empirical support, however, it is unreasonable to evaluate the effectiveness of sterilized foreign exchange interventions against the background of this class of models. Therefore, the purpose of this paper is to investigate the effectiveness of sterilized foreign exchange market interventions on the basis of a more suitable model. Using a chartist-fundamentalist model we show that central banks can influence exchange rates by using sterilized interventions. In particular, turning points occur earlier and exchange rate misalignments are substantially reduced.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesWürzburg economic papers 50en_US
dc.subject.jelF31en_US
dc.subject.jelD84en_US
dc.subject.jelE58en_US
dc.subject.ddc330en_US
dc.subject.keywordForeign exchangeen_US
dc.subject.keywordcentral bank interventionen_US
dc.subject.keywordheterogeneous expectationen_US
dc.subject.stwWechselkurspolitiken_US
dc.subject.stwWechselkurstheorieen_US
dc.subject.stwAnlageverhaltenen_US
dc.subject.stwErwartungstheorieen_US
dc.subject.stwWertpapieranalyseen_US
dc.subject.stwTheorieen_US
dc.titleSterilized Foreign Exchange Market Interventions in a Chartist-Fundamentalist Exchange Rate Modelen_US
dc.typeWorking Paperen_US
dc.identifier.ppn382485173en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:wuewep:50-
Appears in Collections:W.E.P. - Würzburg Economic Papers, Lst. f. VWL, Geld u. internat. Wirtschaftsbeziehungen, Universität Würzburg

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