01775cas a2200265 a 4500 AALejournalIMF015374 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513585840 1018-5941 BD-DhAAL BD-DhAAL Blanchard, Olivier. Can Foreign Exchange Intervention Stem Exchange Rate Pressures from Global Capital Flow Shocks? / Olivier Blanchard, Gustavo Adler, Irineu de Carvalho Filho. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Many emerging market economies have relied on foreign exchange intervention (FXI) in response to gross capital inflows. In this paper, we study whether FXI has been an effective tool to dampen the effects of these inflows on the exchange rate. To deal with endogeneity issues, we look at the response of different countries to plausibly exogenous gross inflows, and explore the cross country variation of FXI and exchange rate responses. Consistent with the portfolio balance channel, we find that larger FXI leads to less exchange rate appreciation in response to gross inflows. Mode of access: Internet Adler, Gustavo. de Carvalho Filho, Irineu. IMF Working Papers; Working Paper ; No. 2015/159 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/159/001.2015.issue-159-en.xml IMF e-Library