000			02227cam a22003137 4500
001			w3398
003			NBER
005			20211020114737.0
006			m o d
007			cr cnu||||||||
008			210910s1990 mau fo 000 0 eng d
100	1		_aLewis, Karen K. _915249
245	1	0	_aOccasional Interventions to Target Rates with a Foreign Exchange Application / _cKaren K. Lewis.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1990.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w3398
500			_aJuly 1990.
520	3		_aThis paper develops a framework for analyzing the effects upon rates when occasional central bank interventions try to keep rates near target levels. Interestingly, the threat of capital gains or losses induced by this stochastic intervention policy helps contain rates within implicit boundaries around the target level. More importantly, this intervention policy concentrates observations of the exchange rate around the target level and away from the implicit bands. In Monte Carlo simulations, sufficiently tight distributions for intervention around the target level imply that the bands are never reached in practice. As an application, the model is empirically evaluated using exchange rate and intervention observations following the 1987 Louvre accord. In these estimates, the probability of intervention never exceeds more than about .5 while the range of observed exchange rates remain far away from the implicit bands where the probability of intervention is one.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF - International Economics _2Journal of Economic Literature class.
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w3398.
856	4	0	_uhttps://www.nber.org/papers/w3398
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w3398
942			_2ddc _cW-PAPER
999			_c345112 _d303674