Nunes, Mauricio and Da Silva, Sergio (2007): Foreign exchange intervention and central bank independence: The Latin American experience.
Download (137kB) | Preview
Employing data from 13 Latin American countries, we find that greater central bank independence is associated with lesser intervention in the foreign exchange market, and also with leaning-against-the-wind intervention. We also find that the structural reforms that occurred in Latin America mostly in the 1990s helped to reduce the need for foreign exchange intervention.
|Item Type:||MPRA Paper|
|Institution:||Federal University of Santa Catarina|
|Original Title:||Foreign exchange intervention and central bank independence: The Latin American experience|
|Keywords:||central bank independence; foreign exchange intervention; Latin America|
|Subjects:||F - International Economics > F3 - International Finance > F31 - Foreign Exchange
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
|Depositing User:||Sergio Da Silva|
|Date Deposited:||29. Sep 2007|
|Last Modified:||17. Feb 2013 12:18|
Alesina, A. and L. H. Summers (1993) Central bank independence and macroeconomic performance: Some comparative evidence, Journal of Money, Credit, and Banking, 25, 15162.
Almekinders, G. J. (1995) Foreign Exchange Intervention: Theory and Evidence, Edward Elgar, Hants.
Cukierman, A. (1992) Central Bank Strategy, Credibility, and Independence: Theory and Evidence, The MIT Press, Cambridge.
Eijffinger, S. C. W. and J. Haan (1996) The political economy of central banking, Princeton Special Papers in International Economics, 19.
Eijffinger, S. C. W. and E. Schaling (1993) Central bank independence in twelve industrial countries, Banca Nazionale del Lavoro Quarterly Review, 184, 141.
Grilli, V., D. Masciandaro and G. Tabellini (1991) Political and monetary institutions and public finance policies in the industrial countries, Economic Policy, 13, 34192.
Jacome, L. I. (2001) Legal central bank independence and inflation in Latin America during the 1990s, IMF Working Papers, 212.
Jacome, L. I. and F. Vasquez (2005) Any link between legal central bank independence and inflation? Evidence from Latin America and the Caribbean, IMF Working Papers, 75.
Lora, E. (2001) Structural reforms in Latin America: What has been reformed and how to measure it, Inter-American Development Bank Working Paper, 466.
Lora, E. and U. Panizza (2002) Structural reforms in Latin America under scrutiny, Inter-American Development Bank Working Papers, 470.
Sarno, L. and M. P. Taylor (2001) Official intervention in the foreign exchange market: Is it effective and, if so, how does it work? Journal of Economic Literature, 39, 83968.
Taylor, M. P. (2004) Is official exchange rate intervention effective? Economica, 71, 111.