Estimating the degree of interventionist policies in the run-up to EMU
Abstract
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.
Cite as
Sondermann, D., Trede, M., & Wilfling, B. (2011). Estimating the degree of interventionist policies in the run-up to EMU. Applied Economics (Appl. Econ.), 43(2), 207–218.Details
Publication type
Research article (journal)
Peer reviewed
Yes
Publication status
Published
Year
2011
Journal
Applied Economics
Volume
43
Issue
2
Start page
207
End page
218
Language
English
ISSN
00036846
DOI