BIS paper explores impact of sterilised FX interventions

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Luiz Awazu Pereira da Silva

Luiz Awazu Pereira da Silva

Research published by the Bank for International Settlements sheds new light on how sterilised foreign exchange interventions affect economic and financial stability.

BIS deputy general manager Luiz Awazu Pereira da Silva and academic economists Pierre-Richard Agénor and Timothy Jackson say that while several earlier papers have studied forex intervention, none explicitly considers the broader impact on the economy and financial stability.

They develop a dynamic stochastic general equilibrium

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