Measuring the Impact of Intervention on Exchange Market Pressure

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dc.contributor.authorSiklos, Pierre L.
dc.contributor.authorWeymark, Diana N.
dc.date.accessioned2020-09-14T00:31:06Z
dc.date.available2020-09-14T00:31:06Z
dc.date.issued2006
dc.description.abstractAbstract: In this article, we introduce an index of ex ante exchange market pressure (EMP) that can be used as a benchmark against which to measure the effectiveness of sterilized intervention. Ex ante EMP is the change in the exchange rate that would have been observed if the policy authority had refrained from intervening and this policy decision had been correctly anticipated by rational agents. Ex post EMP measures the exchange market pressure under the policy actually implemented by the policy authority. We use a ratio of these two EMP measures to assess the effectiveness of sterilized intervention in Canada and Australia.
dc.description.departmentEconomics
dc.identifier.urihttp://hdl.handle.net/1803/15819
dc.language.isoen_US
dc.publisherVanderbilt Universityen
dc.subjectExchange market pressure
dc.subjectexchange rate policy
dc.subjectforeign exchange intervention
dc.subjectBank of Canada policy
dc.subjectReserve Bank of Australia policy.
dc.subjectJEL Classification Number: F31
dc.subject.other
dc.titleMeasuring the Impact of Intervention on Exchange Market Pressure
dc.typeWorking Paperen

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