Optimal Foreign Exchange Market Intervention
نویسندگان
چکیده
منابع مشابه
Optimal Intervention in the Foreign Exchange Market: The Case of Iran
In a managed floating exchange rate regime, one of the most important issues is the degree to which the monetary authorities intervene in the foreign exchange market. The appropriate level of intervention in the foreign exchange market can be discussed in a framework which emphasizes the trade-off between changes in the country’s level of international reserves and minimizes the country’s real...
متن کاملOptimal intervention in the foreign exchange market when interventions affect market dynamics
We address the problem of optimal Central Bank intervention in the exchange rate market when interventions create feedback in the rate dynamics. In particular, we extend the work done on optimal impulse control by Cadenillas and Zapatero (1999, 2000) to incorporate temporary market reactions to Bank interventions. We obtain new explicit optimal impulse control strategies that account for these ...
متن کاملoptimal intervention in the foreign exchange market: the case of iran
in a managed floating exchange rate regime, one of the most important issues is the degree to which the monetary authorities intervene in the foreign exchange market. the appropriate level of intervention in the foreign exchange market can be discussed in a framework which emphasizes the trade-off between changes in the country’s level of international reserves and minimizes the country’s real...
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the main purpose of this paper is theoretically to design the optimal intervention in the foreign exchange market in iran, which has not been investigated by previous studies. the economic fundamentals are strongly affected by the optimal foreign exchange intervention, the consistency of foreign exchange intervention with other policies and political authorities' beliefs about the interven...
متن کاملOptimal Spread with Heterogeneous Expectations in Foreign Exchange Market
Our subject is foreign exchange auction through market makers. We consider market maker’s policy to choose bid and ask as an optimization problem. We show that if traders’ expectations are more heterogeneous, the market maker widens bid and ask spread. He can take advantage of the heterogeneous expectations. We derive an equation of expected transaction prices. This equation makes it possible t...
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ژورنال
عنوان ژورنال: Journal of Political Economy
سال: 1978
ISSN: 0022-3808,1537-534X
DOI: 10.1086/260727