Currency intervention and the global portfolio balance effect: Japanese lessons
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Gerlach, Petra, Currency intervention and the global portfolio balance effect: Japanese lessons, 2012Download Item:
Abstract:
This paper shows that the Japanese foreign exchange interventions in 2003/04 seem to have lowered long-term interest rates in a wide range of countries, including Japan. It seems that this decline was triggered by the investment of the intervention proceeds in US bonds and that a global portfolio balance effect spread the resulting decline in US yields to other bond markets, thus easing global monetary conditions.
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http://people.tcd.ie/gerlachpDescription:
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Author: GERLACH, PETRA
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EconomicsPublisher:
ESRIType of material:
Working PaperSeries/Report no:
ESRI Working Paper;442Availability:
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