Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264672 
Authors: 
Year of Publication: 
2002
Series/Report no.: 
Working Paper No. 80
Publisher: 
Oesterreichische Nationalbank (OeNB), Vienna
Abstract: 
This paper studies the effects of central bank intervention during the 1992- 1993 EMS crises on the D-mark/peseta and D-mark/French franc exchange rate. In particular, it is analyzed how interventions affected the probability of a speculative attack and market participants' expectations about realignments. The findings provide evidence that interventions seem to have increased both the expected realignment rate and the probability of a speculative attack. Furthermore, there is some evidence that this effect arises for publicly known but not for secret interventions.
Subjects: 
Foreign Exchange Intervention
European Monetary System
Markov Switching
JEL: 
E58
F31
F33
Document Type: 
Working Paper

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