Does Asian foreign exchange intervention really hurt Europe? Lessons from a three-asset portfolio model

In the current policy debate, it is often argued that foreign exchange interventions by Asian central banks lead to an excessive appreciation of the euro against the dollar. This paper shows that in a three asset portfolio model the opposite holds: Interventions by Japan's central bank strenghten the dollar against the euro.

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Year of publication:	2005-02-28
Authors:	Dullien, Sebastian
Institutions:	EconWPA
Subject:	China \| Japan \| foreign exchange interventions \| portfolio model

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Extent:	application/pdf
Series:	International Finance.
Type of publication:	Book / Working Paper
Notes:	Type of Document - pdf; pages: 10 10 pages
Classification:	F31 - Foreign Exchange
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10005119464