Measuring the Impact of Intervention on Exchange Market Pressure

dc.contributor.author	Siklos, Pierre L.
dc.contributor.author	Weymark, Diana N.
dc.date.accessioned	2020-09-14T00:31:06Z
dc.date.available	2020-09-14T00:31:06Z
dc.date.issued	2006
dc.identifier.uri	http://hdl.handle.net/1803/15819
dc.description.abstract	Abstract: 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.language.iso	en_US
dc.publisher	Vanderbilt University	en
dc.subject	Exchange market pressure
dc.subject	exchange rate policy
dc.subject	foreign exchange intervention
dc.subject	Bank of Canada policy
dc.subject	Reserve Bank of Australia policy.
dc.subject	JEL Classification Number: F31
dc.subject.other
dc.title	Measuring the Impact of Intervention on Exchange Market Pressure
dc.type	Working Paper	en
dc.description.department	Economics