Handbook of Exchange Rates

26.5 Acknowledgements

I would like to thank Ettore Dorrucci, Arnaud Mehl, Elitza Mileva, an anonymous referee, and the editors for input and discussions. The views expressed in this chapter are those of the author and do not necessarily reflect those of the European Central Bank.

¹Similarly, G7 authorities conducted a concerted intervention on the yen in March 2011, following the disaster due to the earthquake, tsunami, and nuclear accident.

²Surveys of the FX intervention literature are provided by Edison (1993); Sarno and Taylor (2001), and Neely (2005). Blinder et al. (2008) provide a broader survey on communication, including for FX.

³Other important contributions to this literature are Dominguez (2003); Osler (2005); Peiers (1997); Vitale (1999, 2003), among others.

⁴Fratzscher (2005, 2006, 2009) provides a detailed account of FX communication, about the data as well as about the underlying policy discussion. Other empirical work on the role and effectiveness of exchange rate communication policies are by Jansen and de Haan (2005) who focus on the impact of communication—primarily about monetary policy—of the Bundesbank and the ECB mainly on exchange rate volatility and find the communication in most cases had indeed a statistically significant impact. Beine et al. (2004) analyze statements of officials about actual interventions and confirm that such statements may indeed play an important role in moving markets.

⁵It should be noted that the effectiveness of actual interventions ...