Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22343
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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 ineffectivepolicy instrument. Nevertheless many central banks operating under independently floating exchangerates regimes are often engaged in sales and purchases of foreign exchange in order to manipulate thecurrent value of their currencies. In this paper we argue that the skepticism of many economists can beascribed to their orientation on fundamental-based, efficient-market exchange rate models. Given theirweak empirical support, however, it is unreasonable to evaluate the effectiveness of sterilized foreignexchange interventions against the background of this class of models. Therefore, the purpose of thispaper is to investigate the effectiveness of sterilized foreign exchange market interventions on the basis ofa more suitable model. Using a chartist-fundamentalist model we show that central banks can influenceexchange rates by using sterilized interventions. In particular, turning points occur earlier and exchangerate misalignments are substantially reduced.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseries|aWürzburg economic papers |x50en_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-

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