Were Verbal Efforts to Support the Euro Effective? A High-Frequency Analysis of ECB Statements
DNB Working Paper No. 33-2005
23 Pages Posted: 6 May 2005
Date Written: April 2005
Abstract
This paper studies the effects of verbal interventions by European central bankers on high-frequency euro-dollar exchange rates. We find that ECB verbal interventions have had only small and short-lived effects.
Verbal interventions which are reported in news report headlines are more likely to be successful, whereas verbal interventions on days with releases of macroeconomic data are less successful. There is no difference in the effects of comments by members of the ECB Executive Board and presidents of national central banks.
Keywords: Verbal intervention, high-frequency exchange rates, European Central Bank, sign test
JEL Classification: E58, F31, C14
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Official Intervention in the Foreign Exchange Market: Is it Effective, and, If so, How Does it Work?
By Mark P. Taylor and Lucio Sarno
-
By Gabriele Galati and William R. Melick
-
U.S. Intervention: Assessing the Probability of Success
By Owen Humpage
-
Does Central Bank Intervention Increase the Volatility of Foreign Exchange Rates?
-
Is Foreign Exchange Intervention Effective?: The Japanese Experiences in the 1990s
-
Does Foreign Exchange Intervention Signal Future Monetary Policy?
By Graciela Kaminsky and Karen K. Lewis
-
The Practice of Central Bank Intervention: Looking Under the Hood
-
Is Sterilized Foreign Exchange Intervention Effective after All? An Event Study Approach
By Rasmus Fatum and Michael M. Hutchison