抄録
This study adopts a microstructural approach to examine the effect of Japanese official intervention in the yen/dollar foreign exchange market. Our empirical results show that the number of informed traders after the series of interventions is significantly larger and the degree of the market maker's reaction to the order flow and the cost of informed trading in the post-intervention period are significantly smaller than those in the pre-intervention one. This finding implies that frequent and intense intervention promotes competition among the informed traders. We interpret these data to conclude that this competition lowers the degree of information asymmetry in the market. JEL Classification: D82; E58; F31
| 本文言語 | English |
|---|---|
| ホスト出版物のタイトル | Exchange Rates in Developed and Emerging Markets |
| ホスト出版物のサブタイトル | Practices, Challenges and Economic Implications |
| 出版社 | Nova Science Publishers, Inc. |
| ページ | 59-74 |
| ページ数 | 16 |
| ISBN（印刷版） | 9781628081640 |
| 出版ステータス | Published - 2013 12 1 |
ASJC Scopus subject areas
- 経済学、計量経済学および金融学（全般）