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The effectiveness of joint intervention on the yen/US dollar exchange rate

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  • Langnan Chen
  • Xun Huang

Abstract

This paper assesses the effectiveness and its duration of joint intervention on the yen/US dollar exchange rate by utilizing the intervention analysis model and employing the data for the period from 15 August 1996 to 6 January 1999 that are released from Reuters. The results suggest that there should be no significant difference between the effectiveness of joint intervention and independent intervention. In addition, joint intervention has significant impact on the exchange rate, but only lasts for short periods of time.

Suggested Citation

  • Langnan Chen & Xun Huang, 2008. "The effectiveness of joint intervention on the yen/US dollar exchange rate," Applied Economics Letters, Taylor & Francis Journals, vol. 15(5), pages 375-378.
    • Handle: RePEc:taf:apeclt:v:15:y:2008:i:5:p:375-378
    DOI: 10.1080/13504850600675484
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    References listed on IDEAS

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    1. Beine, Michel, 2004. "Conditional covariances and direct central bank interventions in the foreign exchange markets," Journal of Banking & Finance, Elsevier, vol. 28(6), pages 1385-1411, June.
    2. Dominguez, Kathryn Mary, 1990. "Market responses to coordinated central bank intervention," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 32(1), pages 121-163, January.
    3. Loopesko, Bonnie E., 1984. "Relationships among exchange rates, intervention, and interest rates: An empirical investigation," Journal of International Money and Finance, Elsevier, vol. 3(3), pages 257-277, December.
    4. Galati, Gabriele & Melick, William & Micu, Marian, 2005. "Foreign exchange market intervention and expectations: The yen/dollar exchange rate," Journal of International Money and Finance, Elsevier, vol. 24(6), pages 982-1011, October.
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    Cited by:

    1. Kitamura, Yoshihiro, 2020. "A lesson from the four recent large public Japanese FX interventions," Journal of the Japanese and International Economies, Elsevier, vol. 57(C).

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