The paper documents the use of foreign exchange intervention (FXI) across countries and monetary regimes, with special attention to its under inflation targeting (IT). We find significant differences between advanced (AEs) emerging market economies (EMEs). former group conduct FXI limitedly broadly symmetrically, while this policy instrument in EMEs is pervasive mostly asymmetric, a bias toward...

The changes in the capital market bring transformation in the entire economy of the country. The boom and depression of the capital market is reflected in all sectors of the economy. Stock price downward movement continuously in the market forewarns the crisis period in advance. Numerous studies were conducted to trace the movement of stock market and its relationship with various economic fact...

This paperÕs estimates and tests of Fed intervention pro®ts are the ®rst that explicitly adjust for foreign-exchange risk premia; failure to adjust may grossly a€ect estimated pro®ts. Pro®ts appear economically and statistically signi®cant, whether risk premia are modeled as time-constant or as appreciationÕs market beta depending on Fed intervention. The estimates are sensitive to the method o...

This article empirically examines the relationship between order sizes and spreads in the foreign exchange market based on a FX dealer’s quotes. It is found that spreads are independent of order sizes in the inter-dealer market, but they are negatively correlated in the customer market. JEL classification: F31; G14

Using newly assembled data on foreign exchange market intervention, we construct a daily index of pressure during the 1992–3 crisis in European Monetary System, allowing us to pinpoint when and where was most severe. Our analysis focuses neglected factor crisis: role weak dollar intra-EMS tensions. We provide new evidence contribution falling dollar-Deutschmark rate EMS currencies.