In:
German Economic Review, Walter de Gruyter GmbH, Vol. 5, No. 4 ( 2004-12-01), p. 435-450
Abstract:
Central banks frequently intervene in foreign exchange markets to reduce volatility or to correct misalignments. Such operations may be successful if they drive away destabilizing speculators. However, the speculators do not simply vanish but may reappear on other foreign exchange markets. Using a model in which traders are able to switch between foreign exchange markets, we demonstrate that while a central bank indeed has several means at hand to stabilize a specific market, the variability of the other markets depends on how the interventions are implemented.
Type of Medium:
Online Resource
ISSN:
1468-0475
,
1465-6485
DOI:
10.1111/j.1465-6485.2004.00116.x
Language:
English
Publisher:
Walter de Gruyter GmbH
Publication Date:
2004
detail.hit.zdb_id:
1481108-X
detail.hit.zdb_id:
2008828-0
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