In China where there is a profound influence of "local magistrates as citizens’ parents" in the traditional sense, people are naturally inclined to rely on government authorities
We establish an exchange rate determination model for central banks' interventiorm in financial markets.The model shows that central banks can adjuct exchange rate by several policy instruments and that different ...We establish an exchange rate determination model for central banks' interventiorm in financial markets.The model shows that central banks can adjuct exchange rate by several policy instruments and that different instruments may have different effects on exchange rate determination.It specifies potetial policy instruments for central banks as well as their policy effects.Based on these effects,feasible matches of policy instruments in contingent intervention are put forth.展开更多
The present paper uses the model-dependent and the modeL independent approach to measure the RMB exchange market pressure （EMP） and the central bank＇s intervention using monthly data from January 1999 to June 2008....The present paper uses the model-dependent and the modeL independent approach to measure the RMB exchange market pressure （EMP） and the central bank＇s intervention using monthly data from January 1999 to June 2008. It is determined that the RMB has been under great appreciation pressure over the past decade. However, the pressure has been weakening since 2005. The two approaches provide significantly different results in terms of the estimated RMB EMP indices and the estimated central bank＇s interventions. The differences may lead to different predietions of potential currency crises. According to the estimation of the RMB EMP, and based on the model-independent approach, the paper shows that China has been under threat of an appreciation currency crisis since 2008. Therefore, China should adopt a moreflexible exchange rate regime to prevent a potential crisis.展开更多
文摘In China where there is a profound influence of "local magistrates as citizens’ parents" in the traditional sense, people are naturally inclined to rely on government authorities
文摘We establish an exchange rate determination model for central banks' interventiorm in financial markets.The model shows that central banks can adjuct exchange rate by several policy instruments and that different instruments may have different effects on exchange rate determination.It specifies potetial policy instruments for central banks as well as their policy effects.Based on these effects,feasible matches of policy instruments in contingent intervention are put forth.
文摘The present paper uses the model-dependent and the modeL independent approach to measure the RMB exchange market pressure （EMP） and the central bank＇s intervention using monthly data from January 1999 to June 2008. It is determined that the RMB has been under great appreciation pressure over the past decade. However, the pressure has been weakening since 2005. The two approaches provide significantly different results in terms of the estimated RMB EMP indices and the estimated central bank＇s interventions. The differences may lead to different predietions of potential currency crises. According to the estimation of the RMB EMP, and based on the model-independent approach, the paper shows that China has been under threat of an appreciation currency crisis since 2008. Therefore, China should adopt a moreflexible exchange rate regime to prevent a potential crisis.
