search query: @indexterm Foreign exchange policy / total: 20
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| Author: | Kathryn M.E. Dominguez, K. M. E. |
| Title: | The Market Microstructure of Central Bank Intervention |
| Journal: | Journal of International Economics
2003 : JAN, VOL. 59:1, p. 25-46 |
| Index terms: | CENTRAL BANKS EXCHANGE RATES MARKET STRUCTURE FOREIGN EXCHANGE POLICY |
| Language: | eng |
| Abstract: | This paper uses high-frequency intra-daily data to examine the relationship between the efficacy of intervention operations and the "state of the market" at the moment that the operation is made public. The results indicate that some traders typically know that the Fed is intervening at least 1 h prior to the public release of the information in newswire reports. Also, the evidence suggests that the timing of intervention operations matters- interventions that occur during heavy trading volume, that are closely timed to scheduled macro announcements, and that are coordinated with another central bank are the most likely to have large effects. |
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