Exchange market pressure during the current managed float

Authors
Bahmani-Oskooee, M Bernstein, DJ
Citation
M. Bahmani-oskooee et Dj. Bernstein, Exchange market pressure during the current managed float, APPL ECON L, 6(9), 1999, pp. 585-588
Citations number
8
Categorie Soggetti
Economics
Journal title
APPLIED ECONOMICS LETTERS
ISSN journal
13504851 → ACNP
Volume
6
Issue
9
Year of publication
1999
Pages
585 - 588
Database
ISI
SICI code
1350-4851(199909)6:9<585:EMPDTC>2.0.ZU;2-S
Abstract
Due to intervention in the foreign exchange market, any pressure on the ext ernal account of a country could be absorbed either by a change in reserves or by a change in the exchange rate. In this paper we employ Girton and Ro per's EMPM model to investigate the experience of G7 countries. The results show that most of the pressure in G7 countries is absorbed by a change in reserves.