Working Paper: CEPR ID: DP17558
Authors: Marcel Fratzscher; Tobias Heidland; Lukas Menkhoff; Lucio Sarno; Maik Schmeling
Abstract: We construct a novel database of monthly foreign exchange interventions for 49 countries over up to 22 years. We build on a text classification approach that extracts information about interventions from news articles and calibrate our procedure to data about actual interventions. This new dataset allows us to document stylized facts about the use of foreign exchange interventions for countries that neither publish their data nor makethem available to researchers. Moreover, we provide evidence on how foreign exchange interventions are used in conjunction with capital controls and macroprudential policy.
Keywords: Foreign Exchange Intervention; Capital Controls; Macroprudential Regulation; International Capital Flows
JEL Codes: F31; F33; E58
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Foreign exchange interventions (F31) | Capital controls (F38) |
| Capital controls (F38) | Foreign exchange interventions (F31) |
| Foreign exchange interventions (F31) | Macroprudential policies (E61) |