Journal Article

Are successful interventions random events?


Abstract: An examination of the Federal Reserve's intervention successes in the late 1980s, showing that, although the characteristic day-to-day fluctuations in exchange rates virtually ensured that a large share of these interventions would appear successful--purely by chance and even in the absence of a causal link--the number of successes proved larger than pure randomness would suggest.

Keywords: Foreign exchange - Law and legislation;

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Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 1996

Issue: Mar

Order Number: 1