Foreign exchange intervention when interest rates are zero: Does the portfolio balance channel matter after all?
•The paper provides an empirical investigation of intervention transmission channels.•The analysis focuses on Japanese interventions during the zero-interest rate period.•The paper tests hypotheses that evolve around market awareness of intervention.•The results suggest that intervention works throu...
Gespeichert in:
| Veröffentlicht in: | Journal of international money and finance 2015-10, Vol.57, p.185-199 |
|---|---|
| 1. Verfasser: | |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 199 |
|---|---|
| container_issue | |
| container_start_page | 185 |
| container_title | Journal of international money and finance |
| container_volume | 57 |
| creator | Fatum, Rasmus |
| description | •The paper provides an empirical investigation of intervention transmission channels.•The analysis focuses on Japanese interventions during the zero-interest rate period.•The paper tests hypotheses that evolve around market awareness of intervention.•The results suggest that intervention works through the portfolio-balance channel.
This paper provides an empirical investigation of transmission channels of central bank foreign exchange intervention when interest rates are zero and traditional monetary policy options are constrained. The paper develops empirically testable hypotheses regarding the functioning of the intervention transmission channels under study. These hypotheses evolve around whether or not the market is aware or unaware of intervention. Official daily data on interventions in the JPY/USD market during the 1999 to 2004 Japanese zero-interest rate period facilitate the analysis. The results of the analysis are consistent with the suggestion that intervention when interest rates are zero works through the portfolio-balance channel. |
| doi_str_mv | 10.1016/j.jimonfin.2015.07.015 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_1706251740</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><els_id>S0261560615001308</els_id><sourcerecordid>3786273711</sourcerecordid><originalsourceid>FETCH-LOGICAL-c452t-2f873cb49dfc1474997f51bb41e68d8ae7f677dfc2d89cb812b73106aae2dc263</originalsourceid><addsrcrecordid>eNqFUMtOwzAQtBBIlMIvIEucE2wnsRMugMpTQuICZ8tx1tRRagfHlMfX41I4c9nRPmZ2dxA6piSnhPLTPu_tyjtjXc4IrXIi8gQ7aEZrUWSEF80umhHGaVZxwvfRwTT1hBDOi3qGxhsfwL44DB96qdwLYOsihDW4aL3D70tw2wpMEQcVYcIqAP6C4M_wlU9pXAIefYjGD9bjVg3KacAbMQcDXqmYyFiZnzgM54doz6hhgqNfnKPnm-unxV328Hh7v7h8yHRZsZgxk47Xbdl0RtNSlE0jTEXbtqTA665WIAwXIjVZVze6rSlrRUEJVwpYpxkv5uhkqzsG__qWrpe9fwsurZRUEM4qKkqSpvh2Sgc_TQGMHINdqfApKZEbd2Uv_9yVG3clETJBIl5siZB-WFsIctIW0uedDaCj7Lz9T-Ib2oiIuA</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1706251740</pqid></control><display><type>article</type><title>Foreign exchange intervention when interest rates are zero: Does the portfolio balance channel matter after all?</title><source>Elsevier ScienceDirect Journals Complete</source><creator>Fatum, Rasmus</creator><creatorcontrib>Fatum, Rasmus</creatorcontrib><description>•The paper provides an empirical investigation of intervention transmission channels.•The analysis focuses on Japanese interventions during the zero-interest rate period.•The paper tests hypotheses that evolve around market awareness of intervention.•The results suggest that intervention works through the portfolio-balance channel.
This paper provides an empirical investigation of transmission channels of central bank foreign exchange intervention when interest rates are zero and traditional monetary policy options are constrained. The paper develops empirically testable hypotheses regarding the functioning of the intervention transmission channels under study. These hypotheses evolve around whether or not the market is aware or unaware of intervention. Official daily data on interventions in the JPY/USD market during the 1999 to 2004 Japanese zero-interest rate period facilitate the analysis. The results of the analysis are consistent with the suggestion that intervention when interest rates are zero works through the portfolio-balance channel.</description><identifier>ISSN: 0261-5606</identifier><identifier>EISSN: 1873-0639</identifier><identifier>DOI: 10.1016/j.jimonfin.2015.07.015</identifier><language>eng</language><publisher>Kidlington: Elsevier Ltd</publisher><subject>Central banks ; Channels of transmission ; Foreign exchange ; Foreign exchange market intervention ; Hypotheses ; Hypothesis testing ; Interest rates ; Intervention ; Monetary policy ; Studies ; Zero interest rates</subject><ispartof>Journal of international money and finance, 2015-10, Vol.57, p.185-199</ispartof><rights>2015 Elsevier Ltd</rights><rights>Copyright Elsevier Science Ltd. Oct 2015</rights><lds50>peer_reviewed</lds50><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c452t-2f873cb49dfc1474997f51bb41e68d8ae7f677dfc2d89cb812b73106aae2dc263</citedby><cites>FETCH-LOGICAL-c452t-2f873cb49dfc1474997f51bb41e68d8ae7f677dfc2d89cb812b73106aae2dc263</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktohtml>$$Uhttps://dx.doi.org/10.1016/j.jimonfin.2015.07.015$$EHTML$$P50$$Gelsevier$$H</linktohtml><link.rule.ids>314,780,784,3550,27924,27925,45995</link.rule.ids></links><search><creatorcontrib>Fatum, Rasmus</creatorcontrib><title>Foreign exchange intervention when interest rates are zero: Does the portfolio balance channel matter after all?</title><title>Journal of international money and finance</title><description>•The paper provides an empirical investigation of intervention transmission channels.•The analysis focuses on Japanese interventions during the zero-interest rate period.•The paper tests hypotheses that evolve around market awareness of intervention.•The results suggest that intervention works through the portfolio-balance channel.
This paper provides an empirical investigation of transmission channels of central bank foreign exchange intervention when interest rates are zero and traditional monetary policy options are constrained. The paper develops empirically testable hypotheses regarding the functioning of the intervention transmission channels under study. These hypotheses evolve around whether or not the market is aware or unaware of intervention. Official daily data on interventions in the JPY/USD market during the 1999 to 2004 Japanese zero-interest rate period facilitate the analysis. The results of the analysis are consistent with the suggestion that intervention when interest rates are zero works through the portfolio-balance channel.</description><subject>Central banks</subject><subject>Channels of transmission</subject><subject>Foreign exchange</subject><subject>Foreign exchange market intervention</subject><subject>Hypotheses</subject><subject>Hypothesis testing</subject><subject>Interest rates</subject><subject>Intervention</subject><subject>Monetary policy</subject><subject>Studies</subject><subject>Zero interest rates</subject><issn>0261-5606</issn><issn>1873-0639</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2015</creationdate><recordtype>article</recordtype><recordid>eNqFUMtOwzAQtBBIlMIvIEucE2wnsRMugMpTQuICZ8tx1tRRagfHlMfX41I4c9nRPmZ2dxA6piSnhPLTPu_tyjtjXc4IrXIi8gQ7aEZrUWSEF80umhHGaVZxwvfRwTT1hBDOi3qGxhsfwL44DB96qdwLYOsihDW4aL3D70tw2wpMEQcVYcIqAP6C4M_wlU9pXAIefYjGD9bjVg3KacAbMQcDXqmYyFiZnzgM54doz6hhgqNfnKPnm-unxV328Hh7v7h8yHRZsZgxk47Xbdl0RtNSlE0jTEXbtqTA665WIAwXIjVZVze6rSlrRUEJVwpYpxkv5uhkqzsG__qWrpe9fwsurZRUEM4qKkqSpvh2Sgc_TQGMHINdqfApKZEbd2Uv_9yVG3clETJBIl5siZB-WFsIctIW0uedDaCj7Lz9T-Ib2oiIuA</recordid><startdate>20151001</startdate><enddate>20151001</enddate><creator>Fatum, Rasmus</creator><general>Elsevier Ltd</general><general>Elsevier Science Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20151001</creationdate><title>Foreign exchange intervention when interest rates are zero: Does the portfolio balance channel matter after all?</title><author>Fatum, Rasmus</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c452t-2f873cb49dfc1474997f51bb41e68d8ae7f677dfc2d89cb812b73106aae2dc263</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2015</creationdate><topic>Central banks</topic><topic>Channels of transmission</topic><topic>Foreign exchange</topic><topic>Foreign exchange market intervention</topic><topic>Hypotheses</topic><topic>Hypothesis testing</topic><topic>Interest rates</topic><topic>Intervention</topic><topic>Monetary policy</topic><topic>Studies</topic><topic>Zero interest rates</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Fatum, Rasmus</creatorcontrib><collection>CrossRef</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of international money and finance</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Fatum, Rasmus</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Foreign exchange intervention when interest rates are zero: Does the portfolio balance channel matter after all?</atitle><jtitle>Journal of international money and finance</jtitle><date>2015-10-01</date><risdate>2015</risdate><volume>57</volume><spage>185</spage><epage>199</epage><pages>185-199</pages><issn>0261-5606</issn><eissn>1873-0639</eissn><abstract>•The paper provides an empirical investigation of intervention transmission channels.•The analysis focuses on Japanese interventions during the zero-interest rate period.•The paper tests hypotheses that evolve around market awareness of intervention.•The results suggest that intervention works through the portfolio-balance channel.
This paper provides an empirical investigation of transmission channels of central bank foreign exchange intervention when interest rates are zero and traditional monetary policy options are constrained. The paper develops empirically testable hypotheses regarding the functioning of the intervention transmission channels under study. These hypotheses evolve around whether or not the market is aware or unaware of intervention. Official daily data on interventions in the JPY/USD market during the 1999 to 2004 Japanese zero-interest rate period facilitate the analysis. The results of the analysis are consistent with the suggestion that intervention when interest rates are zero works through the portfolio-balance channel.</abstract><cop>Kidlington</cop><pub>Elsevier Ltd</pub><doi>10.1016/j.jimonfin.2015.07.015</doi><tpages>15</tpages><oa>free_for_read</oa></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 0261-5606 |
| ispartof | Journal of international money and finance, 2015-10, Vol.57, p.185-199 |
| issn | 0261-5606 1873-0639 |
| language | eng |
| recordid | cdi_proquest_journals_1706251740 |
| source | Elsevier ScienceDirect Journals Complete |
| subjects | Central banks Channels of transmission Foreign exchange Foreign exchange market intervention Hypotheses Hypothesis testing Interest rates Intervention Monetary policy Studies Zero interest rates |
| title | Foreign exchange intervention when interest rates are zero: Does the portfolio balance channel matter after all? |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-05T09%3A33%3A36IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Foreign%20exchange%20intervention%20when%20interest%20rates%20are%20zero:%20Does%20the%20portfolio%20balance%20channel%20matter%20after%20all?&rft.jtitle=Journal%20of%20international%20money%20and%20finance&rft.au=Fatum,%20Rasmus&rft.date=2015-10-01&rft.volume=57&rft.spage=185&rft.epage=199&rft.pages=185-199&rft.issn=0261-5606&rft.eissn=1873-0639&rft_id=info:doi/10.1016/j.jimonfin.2015.07.015&rft_dat=%3Cproquest_cross%3E3786273711%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1706251740&rft_id=info:pmid/&rft_els_id=S0261560615001308&rfr_iscdi=true |