02280cas a2200325 a 4500 AALejournalIMF021588 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513571959 1018-5941 BD-DhAAL BD-DhAAL Jin, Zhongxia. Macroeconomic Impact of Foreign Exchange Intervention : Some Cross-country Empirical Findings / Zhongxia Jin, Haobin Wang, Yue Zhao. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (28 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 Based on VAR analyses across 26 countries, we show that, although foreign exchange intervention (FXI) is effective in stabilizing the nominal exchange rate in the short run, its impacts on the real exchange rate are less significant: Limitations on nominal exchange rate flexibility may induce adjustments to the real exchange rate through domestic prices. We find that countries that intervene more heavily in response to external shocks experience greater general and asset price volatility, which is not conducive to countering the impact of external shocks. We show that China's macroeconomic responses to external shocks are broadly consistent with international experiences among intervening countries. The simple methodological framework adopted in this paper is meant to examine a broad set of macroeconomic variables and bears limitations; our findings serve to motivate more structural analysis on FXI's macroeconomic impacts going forward. Mode of access: Internet Foreign Exchange imf Inflation imf Informal Economy imf Price Level imf Underground Econom imf Wang, Haobin. Zhao, Yue. IMF Working Papers; Working Paper ; No. 2021/126 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/126/001.2021.issue-126-en.xml IMF e-Library