عنوان

Exchange rate management in interdependent economies :

(Number (ISBN

3642500293

(Number (ISBN

9783642500299

Number

b569229

Title Proper

Exchange rate management in interdependent economies :

General Material Designation

[Book]

Other Title Information

from Williamsburg to Louvre

First Statement of Responsibility

Silke Fabian.

Place of Publication, Distribution, etc.

Heidelberg

Name of Publisher, Distributor, etc.

Physica-Verlag

Date of Publication, Distribution, etc.

©1993.

Specific Material Designation and Extent of Item

(xviii, 172 pages) : illustrations

Series Title

Schriftenreihe Handeln und Entscheiden in komplexen ökonomischen Situationen, Bd. 9.

Text of Note

I Official Central Bank Interventions --; 1 Effectiveness of Foreign Exchange Market Interventions --; 2 A Signalling Model of Interventions --; Summary of Part I --; II International Exchange Rate Management --; 3 Non-Cooperative Intervention Policies --; 4 International Central Bank Cooperation --; 5 The International Prisoner's Dilemma --; Summary of Part II --; III Empirical Analysis --; Overview --; 6 Did Bundesbank Interventions serve as Signals of Monetary Policy? --; Summary of Part III --; Data Appendix --; Discussion and Concluding Summary --; References.

Text of Note

The theoretical part of this book analyzes non-cooperative and cooperative policies of exchange rate management within a formal two-country game-theoretic framework where interventions are fully neutralized and signal future changes in monetary policy. This analysis incorporates two novel factors crucial for understanding real-world intervention experience; partial credibility and non-rational expectations. In contrast to traditional models of the repeated games literature where reputational effects establish full credibility, in the theory presented here centralbank credibility problems (towards the private sector and other countries) cannot be eliminated. While this reduces the effectiveness of central bank signals, this also motivates the use of costly interventions as opposed to mere policy announcements. Secondly, the introduction of non-rational expectations allows to account for the differing successes of actual centralbank intervention operations. The empirical part investigates whether Bundesbank interventions in the US dollar market between 1983-87actually served as signals of future changes in the monetary base. By using several alternative models of expectation formation the study cannot uncoverany favorable evidence for this hypothesis. Strikingly, this result emerges for both unilateral and coordinated intervention policies.

Foreign exchange administration -- Mathematical models.

Monetary policy -- Mathematical models.

Class number

Book number

Silke Fabian.

Silke Fabian

Electronic name

[Book]

Y