Universidad Complutense de Madrid
E-Prints Complutense

Implicit bands in the yen/dollar exchange rate

Impacto

Downloads

Downloads per month over past year

Ledesma Rodríguez, Francisco and Navarro Ibáñez, Manuel and Pérez Rodriguez, Jorge and Sosvilla-Rivero, Simón (2011) Implicit bands in the yen/dollar exchange rate. Applied Economics, 43 (10). pp. 1241-1255. ISSN 1466-4283

[img]
Preview
PDF
788kB

Official URL: https://doi.org/10.1080/00036840802600384



Abstract

This article attempts to identify implicit exchange rate regimes for the yen/dollar exchange rate. To that end, we apply a sequential procedure that considers both the dynamics of exchange rates and central bank interventions to data covering the period from 1971 to 2003. Our results suggest that implicit bands existed in two subperiods: April–December 1980 and March–October 1987, the latter coinciding with the Louvre Accord. Furthermore, the study of the credibility of such implicit bands indicates the high degree of confidence attributed by economic agents to the evolution of the yen/dollar exchange rate within the detected implicit band rate, thus lending further support to the relevance of such implicit bands.


Item Type:Article
Uncontrolled Keywords:Banking; Capital flow; Currency devaluation; Currency market; Exchange rate; Real exchange rate.
Subjects:Social sciences > Economics > World economy
JEL:F31, F33
ID Code:59736
Deposited On:26 Mar 2020 11:53
Last Modified:30 Mar 2020 10:54

Origin of downloads

Repository Staff Only: item control page