Dread of Depreciation [electronic resource] : Measuring Real Exchange Rate Interventions / Jayasri Dutta.
Material type:
TextSeries: IMF Working Papers; Working Paper ; No. 02/63Publication details: Washington, D.C. : International Monetary Fund, 2002Description: 1 online resource (36 p.)ISBN: 1451848439 :ISSN: 1018-5941Subject(s): Equation | Exchange Rate | Exchange Rates | Interventions | Parity Conditions | Real Exchange Rate | Argentina | Canada | Italy | Malaysia | United StatesAdditional physical formats: Print Version:: Dread of Depreciation : Measuring Real Exchange Rate InterventionsOnline resources: IMF e-Library | IMF Book Store Abstract: We specify an empirical framework to detect the effects of official intervention on real exchange rate dynamics. Using data for 27 advanced and emerging market economies, we find evidence that interventions are a near-universal practice; almost all countries intervene when real exchange rates depreciate; interventions reduce the degree of persistence in real exchange rates; and the defense of an overvalued currency tends to be contractionary.
We specify an empirical framework to detect the effects of official intervention on real exchange rate dynamics. Using data for 27 advanced and emerging market economies, we find evidence that interventions are a near-universal practice; almost all countries intervene when real exchange rates depreciate; interventions reduce the degree of persistence in real exchange rates; and the defense of an overvalued currency tends to be contractionary.
Description based on print version record.
There are no comments on this title.