Foreign Exchange Intervention and Monetary Policy in Japan, 2003-04

Arbeitspapier

This article examines the rationale behind the massive increase in Japanese foreign exchange market intervention operations in 2003-04, and evaluates its effectiveness both in limiting yen exchange rate appreciation and influencing the direction of monetary policy. The two main questions addressed in this study are: Was the intervention effective in slowing exchange rate appreciation compared to a counterfactual case with no intervention? And, has intervention on such a large scale authorized by the Ministry of Finance been able to directly influence liquidity creation or indirectly influence the stance of Bank of Japan policy?

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: EPRU Working Paper Series ; No. 2005-05

Classification and Topics

• Classification: Wirtschaft ; Money Supply; Credit; Money Multipliers ; Central Banks and Their Policies ; Foreign Exchange
• Subject: foreign exchange intervention ; Japanese monetary policy ; Wechselkurspolitik ; Geldpolitik ; Japan

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fatum, Rasmus ; Hutchison, Michael M.
• Event: Veröffentlichung
• (who): University of Copenhagen, Economic Policy Research Unit (EPRU)
• (where): Copenhagen
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/82087
• Last update: 10.03.2025, 11:44 AM CET