Journal Article

Can foreign exchange intervention signal monetary policy changes?

Abstract: An examination of the ability of foreign exchange intervention to signal upcoming changes in monetary policy, showing that for such a signaling mechanism to make sense, the link between intervention and monetary policy should be clear, the implied policy should be credible, and information about intervention should be communicated accurately to market participants.

Keywords: Foreign exchange - Law and legislation; Monetary policy;

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 1995

Issue: May

Order Number: 1