Intervention index and exchange rate regimes: the cases of selected East-Asian economies

Pontines, Victor and Siregar, Reza (2009): Intervention index and exchange rate regimes: the cases of selected East-Asian economies.

Abstract

Given the absence of publicly available information on foreign exchange intervention, we propose an index of central bank intervention in the exchange market to classify exchange rate regimes adopted by four East Asian economies. We revisit an old debate on whether these crisis-effected East Asia countries have indeed returned to their pre-1997 rigid exchange rate policies. If, instead, there had been evidences of a policy shift to a more flexible regime, was the move voluntary, or mainly due to high market pressures on the currency? Our findings clearly reject the “hollow middle” hypothesis.

• Item Type: MPRA Paper
• Language: English
• Keywords: Exchange Market Intervention; Exchange Rate Regimes; East Asian Countries
• Subjects: F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics; F - International Economics > F3 - International Finance > F31 - Foreign Exchange

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