Please use this identifier to cite or link to this item: 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 foreignexchange market intervention may be effective, in addition to the traditionalportfolio balance and signaling channels. If strong and persistent misalignments ofthe exchange rate are caused by non-fundamental influences, such that a return toequilibrium is hampered by a coordination failure among fundamentals-basedtraders, then central bank intervention may act as a coordinating signal,encouraging stabilizing speculators to re-enter the market at the same time. Wedevelop this idea in the framework of a simple microstructural model of exchangerate movements, which we then estimate using daily data on the dollar-markexchange rate and on Federal Reserve and Bundesbank intervention operations.The results are supportive of the existence of a coordination channel ofintervention effectiveness.en_US
dc.language.isoengen_US
dc.publisher|aDeutsche Bundesbank |cFrankfurt a. M.-
dc.relation.ispartofseries|aDiscussion paper Series 1 / Volkswirtschaftliches Forschungszentrum der Deutschen Bundesbank |x2006,08en_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.stwSchätzungen_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-

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