Estimating the degree of interventionist policies in the run-up to EMU
Sondermann David, Trede Mark, Wilfling Bernd
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.
Publikationstyp
Forschungsartikel (Zeitschrift)
Begutachtet
Ja
Publikationsstatus
Veröffentlicht
Jahr
2011
Fachzeitschrift
Applied Economics
Band
43
Erste Seite
207
Letzte Seite
218
Sprache
Englisch
ISSN
0003-6846
DOI