Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261931 
Year of Publication: 
2019
Citation: 
[Journal:] American Economic Journal: Macroeconomics [ISSN:] 1945-7715 [Volume:] Volume11 [Issue:] 1 [Publisher:] American Economic Association [Place:] Nashville, TN [Year:] 2019 [Pages:] 132-156
Publisher: 
American Economic Association, Nashville, TN
Abstract: 
This paper examines foreign exchange intervention based on novel daily data covering 33 countries from 1995 to 2011. We find that intervention is widely used and an effective policy tool, with a suc cess rate in excess of 80 percent under some criteria. The policy works well in terms of smoothing the path of exchange rates, and in stabilizing the exchange rate in countries with narrow band regimes. Moving the level of the exchange rate in flexible regimes requires that some conditions are met, including the use of large volumes and that intervention is made public and supported via communication.
JEL: 
E52
E58
F31
F33
O19
O24
Persistent Identifier of the first edition: 
Document Type: 
Article
Document Version: 
Published Version

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