Estimating the degree of interventionist policies in the run-up to EMU

Sondermann D,Trede M,Wilfling B


Zusammenfassung
Based on a theoretical monetary exchange-rate model in continuous time, this article establishes a sequential estimation framework which is capable of indicating central bank intervention in the run-up to a currency union. Using daily pre-European Monetary Union (pre-EMU) exchange-rate data for the countries of the current Euro zone, we find mixed evidence of active pre-EMU intervention policies (so-called institutional frontloading strategies). Our estimation framework is highly relevant to economic and political agents operating in financial markets of the upcoming EMU accession countries. © 2011 Taylor & Francis.



Publikationstyp
Forschungsartikel (Zeitschrift)

Begutachtet
Ja

Publikationsstatus
Veröffentlicht

Jahr
2011

Fachzeitschrift
Applied Economics

Band
43

Ausgabe
2

Erste Seite
207

Letzte Seite
218

Sprache
Englisch

ISSN
00036846

DOI