Journal Article
Does intervention explain the forward discount puzzle?
Abstract: An investigation of the impact of U.S. and German central-bank interventions on the forward discount puzzle for two exchange rates-the German mark/U.S. dollar and the Japanese yen/U.S. dollar-using official 1985-91 data. The evidence on the importance of intervention is strongest for the DM/$. However, the direction of the impact is inconsistent with the findings of Flood and Rose (1996) if periods of intervention are viewed as equivalent to fixed-rate regimes.
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https://fraser.stlouisfed.org/title/economic-review-federal-reserve-bank-cleveland-1328/1997-quarter-4-4094?page=25
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Review
Publication Date: 1997
Issue: Q IV
Pages: 24-31