Resource title

Intervention policy of the BoJ: a unified approach

Resource image

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Resource description

Intervening in the FX market implies a complex decision process for central banks. Monetary authorities have to decide whether to intervene or not, and if so, when and how. Since the successive steps of this procedure are likely to be highly interdependent, we adopt a nested logit approach to capture their relationships and to characterize the prominent features of the various steps of the intervention decision. Our findings shed some light on the determinants of central bank interventions, on the so-called secrecy puzzle and on the identification of the variables influencing the detection of foreign exchange transactions by market traders.

Resource author

Michel Beine, Oscar Bernal, Jean-Yves Gnabo, Christelle Lecourt

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25939

Resource license

Adapt according to the presented license agreement and reference the original author.