Srinivasan, Naveen; Kumar, Sudhanshu - In: Journal of International Financial Markets, … 22 (2012) 2, pp. 253-263
Empirical estimates of the Reserve Bank of India's (RBI) intervention reaction function suggest that the central bank actively intervenes in the foreign exchange market to contain volatility but this intervention is neither continuous nor linear. It is better described by a nonlinear policy...