Currency intervention and the global portfolio balance effect: Japanese lessons

Petra Gerlach-Kristen and Robert McCauley

No 389, BIS Working Papers from Bank for International Settlements

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.

Keywords: Intervention; portfolio balance effect; Japan (search for similar items in EconPapers)
Pages: 17 pages
Date: 2012-10
New Economics Papers: this item is included in nep-ifn, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Currency intervention and the global portfolio balance effect: Japanese lessons (2016)
Working Paper: Currency intervention and the global portfolio balance effect: Japanese lessons (2015)
Working Paper: Currency intervention and the global portfolio balance effect: Japanese lessons (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:389

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