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An exchange rate determination model for central banks’ interventions in financial markets

  • Applied Mathematics
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Abstract

We establish an exchange rate determination model for central banks’ interventions in financial markets. The model shows that central banks can adjust exchange rate by several policy instruments and that different instruments may have different effects on exchange rate determination. It specifies potential 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.

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Authors and Affiliations

  1. College of Management, Zhejiang University, 310029, Hangzhou, China

    Lin Jun-qing, Huang Zu-hui & Zhan Ming-hua

Authors
  1. Lin Jun-qing
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  2. Huang Zu-hui
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  3. Zhan Ming-hua
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Project supported by the National Natural Science Foundation of China (No. 79870074)

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Jun-qing, L., Zu-hui, H. & Ming-hua, Z. An exchange rate determination model for central banks’ interventions in financial markets. J. Zhejiang Univ.-Sci. 3, 445–448 (2002). https://doi.org/10.1631/BF02839488

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  • DOI: https://doi.org/10.1631/BF02839488

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