Currency manipulation and currency wars: Analyzing the dynamics of competitive central bank interventions
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F22%3A10250715" target="_blank" >RIV/61989100:27510/22:10250715 - isvavai.cz</a>
Result on the web
<a href="https://www.sciencedirect.com/science/article/pii/S0165188922002482?pes=vor" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0165188922002482?pes=vor</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.jedc.2022.104545" target="_blank" >10.1016/j.jedc.2022.104545</a>
Alternative languages
Result language
angličtina
Original language name
Currency manipulation and currency wars: Analyzing the dynamics of competitive central bank interventions
Original language description
Based on a behavioral exchange rate model, we show that a central bank that conducts competitive interventions to promote its economy may devalue its currency, albeit at the expense of creating heightened exchange rate volatility. However, currency manipulation may easily spark currency wars, i.e. rival central banks may retaliate by conducting competitive interventions, too. We find that the central bank that intervenes more aggressively during a currency war may succeed in devaluing its currency, yet the exchange rate's volatility may increase significantly. If both central banks act equally aggressively, a currency war merely amplifies exchange rate fluctuations. (C) 2022 Elsevier B.V.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50200 - Economics and Business
Result continuities
Project
<a href="/en/project/GJ20-25660Y" target="_blank" >GJ20-25660Y: Modeling credit risk and system risk in the non-life insurance sector.</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Economic Dynamics and Control
ISSN
0165-1889
e-ISSN
—
Volume of the periodical
145
Issue of the periodical within the volume
104545
Country of publishing house
US - UNITED STATES
Number of pages
25
Pages from-to
nestrankovano
UT code for WoS article
000886759900004
EID of the result in the Scopus database
2-s2.0-85140486614