Central Bank Forex Intervention Assessed in Continuous Time

This paper looks at some of the principal characteristics of foreign exchange intervention by central banks. The approach is novel in that virtually continuous time data have been exploited using RETURNS screen information. 

The paper is divided into two main parts. The first part consists of a descriptive study of the nature and practice of foreign exchange interventions in the time period considered, the twelve weeks from 9/4/89 until 30/6/89. The second part looks at the factors determining Central Bank intervention and investigates how successful intervention turned out to be.

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