Myths and reality of foreign exchange interventions: An application to Japan

International Journal of Finance and Economics

Volumn 12, Issue 2, 2007, Pages 133-154

  Ito, Takatoshi ^a  

^a UNIVERSITY OF TOKYO   (Japan)

Author keywords

Exchange rate; Intervention; Yen

Indexed keywords

CURRENCY MARKET; EXCHANGE RATE; FINANCIAL MARKET; FINANCIAL POLICY;

ASIA; EURASIA; FAR EAST; JAPAN;

EID: 34249331363     PISSN: 10769307     EISSN: 10991158     Source Type: Journal    
DOI: 10.1002/ijfe.336     Document Type: Article

References (30)

1. Balbach AB. 1978. The mechanics of intervention in exchange markets. Federal Reserve Bank of St. Louis Review February: 2-7.
2. Bank of International Settlements. 2002. Central Bank Intervention and Market Expectations, BIS Papers No. 10, April, Basle: Bank of International Settlements. http://www.bis.org/publ/bispap10.htm
3. Bhattacharya U, Weller P. 1997. The advantage to hiding one's hand: speculation and Central Bank intervention in the foreign exchange market. Journal of Monetary Economics 39(2): 251-277.
4. Chaboud AP, Humpage OF. 2005. An assessment of the impact of Japanese foreign exchange intervention: 1991-2004. Board of Governors of the Federal Reserve System, International Finance Discussion Papers, No. 824, January.
5. Dominguez K. 1990. Market Responses to Coordinated Central Bank Intervention. Carnegie-Rochester Series on Public Policy, vol. 32. North-Holland: Amsterdam; 121-164.
6. Dominguez K. 1998. Central Bank intervention and exchange rate volatility. Journal of International Money and Finance 17: 161-190.
7. Dominguez KME. 2003a. Foreign exchange intervention: did it work in the 1990s? In Dollar Overvaluation and the World Economy, Bergsten F, Williamson J (eds). Special Report, vol. 15. Institute for International Economics: Washington, DC; 217-245.
8. Dominguez KME. 2003b. The market microstructure of Central Bank intervention. Journal of International Economics 59(1): 25-45.
9. Dominguez K, Frankel J. 1993a. Does foreign exchange intervention matter? The portfolio effect. American Economic Review 83: 1356-1369.
10. Dominguez K, Frankel J. 1993b. Foreign exchange intervention: an empirical assessment. In On Exchange Rates, Chapter 16, Frankel JA (ed.). MIT Press: Cambridge, MA; 327-345.
11. Dominguez K, Frankel J. 1993c. Does Foreign Exchange Intervention Work? Institute for International Economics: Washington, DC.
12. Edison HJ. 1993. The effectiveness of Central-Bank intervention: a survey of the literature after 1982. Special Papers in International Economics, No. 18, Princeton University: Princeton, NJ; July 1993.
13. Fatum R, Hutchison M. 2006. Effectiveness of official daily foreign exchange market intervention operations in Japan. Journal of International Money and Finance 25: 199-219.
14. Funabashi Y. 1988. Managing The Dollar: From The Plaza To The Louvre. Institute for International Economics: Washington; 297pp.
15. Henning CR. 1999. The Exchange Stabilization Fund: Slush Money or War Chest?. Institute for International Economics: Washington, DC.
16. Humpage O. 1999. U.S. intervention: assessing the probability of success. Journal of Money, Credit and Banking 31(4): 731-747.
17. Ito T. 1987. The intra-daily exchange rate dynamics and monetary policies after the group of five agreement. Journal of the Japanese and International Economies 1: 275-298.
18. Ito T. 2003a. Is foreign exchange intervention effective? The Japanese experiences in the 1990s. In Monetary History, Exchange Rates, and Financial Markets, Mizen P (ed.). Essays in Honour of Charles Goodhart, vol. 2. Edward Elgar: Cheltenham, UK; 126-153. [An earlier draft was issued as NBER Working Paper No. 8914, April 2002.]
19. Ito T. 2003b. Nihon no Kawase Kainyu no Bunseki, [in Japanese, tr. Research on Japan's foreign exchange intervention]. Hitotsubashi University, Keizai Kenkyu 54(2): 97-113.
20. Ito T. 2004. The Yen and the Japanese economy, 2004. In Dollar Adjustment: How Far? Against What?, Chapter 8, Bergsten CF, Williamson J (eds). Institute for International Economics: Washington, DC; 171-196.
21. Ito T. 2005. Interventions and Japanese economic recovery. International Economics and Economic Policy (IEEP) 2(2-3): 219-239.
22. Ito T, Yabu T. 2007. What prompts Japan to intervene in the forex market? A new approach to a reaction function. Journal of International Money and Finance 26(2): 193-212. [NBER Working Paper. No. 10456, May 2004.]
23. Kaminsky GL, Lewis KK. 1996. Does foreign exchange intervention signal future monetary policy? Journal of Monetary Economics 37(2): 285-312.
24. Leahy MP. 1995. The profitability of US intervention in the foreign exchange markets. Journal of International Money and Finance 14(6): 823-844.
25. Mussa M. 1981. The Role of Official Intervention (Occasional Paper No. 6). Group of Thirty: New York.
26. Neely CJ. 1998. Technical analysis and the profitability of U.S. foreign exchange intervention. Federal Reserve Bank of St. Louis Review July/August: 3-17.
27. Neely CJ. 2005. An analysis of recent studies of the effect of foreign exchange intervention. Federal Reserve Bank of St. Louis Review November/December: 685-717.
28. Popper H, Montgomery JD. 2001. Information sharing and Central Bank intervention in the foreign exchange market. Journal of International Economics 55: 295-316.
29. Sarno L, Taylor MP. 2001. Official intervention in the foreign exchange market: is it effective and, if so, how does it work? Journal of Economic Literature XXXIX: 839-868.
30. Vitale P. 1999. Sterilised Central Bank intervention in the foreign exchange market. Journal of International Economics 49: 245-267.