Effectiveness of the Costa Rican Central Bank forex intervention
DOI:
https://doi.org/10.15359/eys.21-49.1Keywords:
exchange rate, monetary policy, market intervention, equilibrium exchange rateAbstract
This paper represents an empirical approach to assess the effectiveness of foreign exchange interventions following the criteria by K. Domínguez (1998) using a GARCH model based on the work by C. Broto (2012). Analyses are conducted to evaluate the FOREX rules of intervention followed by the BCCR, and the probability of occurrence of an intervention is estimated using a LOGIT model. In addition, the paper attempts to analyze what happened to the exchange arrangements applied in Costa Rica as a result of the 2006 exchange rate flexibility and transition to inflation targets.
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Anexos
Variables Utilizadas
Tipo de Cambio de Referencia Compra y Venta, BCCR. http://indicadoreseconomicos.bccr.fi.cr/indicadoreseconomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&CodCuadro=%20400
Tipo de Cambio promedio MONEX, BCCR. http://indicadoreseconomicos.bccr.fi.cr/indicadoreseconomicos/Cuadros/frmVerCatCuadro.aspx?idioma=1&CodCuadro=%20748
Intervención Cambiaria del BCCR, BCCR.
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