Foreign exchange intervention and central bank independence: The Latin American experience

Nunes, Mauricio and Da Silva, Sergio (2007): Foreign exchange intervention and central bank independence: The Latin American experience.

Abstract

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
• Language: English
• 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

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