Rasmus Fatum

Evaluating Foreign Exchange Market Intervention: Self-Selection, Counterfactuals and Average Treatment Effects (2006)

Fatum, Rasmus, Hutchison, Michael M.

Studies of central bank intervention are complicated by the fact that we typically observe intervention only during periods of turbulent exchange markets. Furthermore, entering the market during...

Rules Versus Discretion in Foreign Exchange Intervention: Evidence from Official Bank of Canada High-Frequency Data (2004)

Fatum, Rasmus, King, Michael R.

This paper contains an empirical analysis of high-frequency data on official Bank of Canada intervention and exchange rates (quoted at the end of every 5-minute interval over every 24-hour period)....

Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan (2003)

Fatum, Rasmus, Hutchison, Michael M.

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until...

Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan (2003)

Fatum, Rasmus, Hutchison, Michael M.

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until...

Do Exchange Rates Respond to Day-to-Day Changes in Monetary Policy Expectations? Evidence from the Federal Funds Futures Market (2003)

Fatum, Rasmus, Scholnick, Barry

This paper is the first to utilize the informational content embodied in Federal funds futures contracts for extracting day-to-day changes in expectations of future US monetary policy, in the context...

Rules Versus Discretion in Foreign Exchange Intervention: Evidence from Official Bank of Canada High-Frequency Data

Rasmus Fatum, Michael King

This paper contains an empirical analysis of high-frequency data on official Bank of Canada intervention and exchange rates (quoted at the end of every 5-minute interval over every 24-hour period)....

Monetary Policy News and Exchange Rate Responses: Do Only Surprises Matter?

Rasmus Fatum, Barry Scholnick

This paper shows that exchange rates respond to only the surprise component of an actual US monetary policy change and that failure to disentangle the surprise component from the actual monetary...

Real-Time Effects of Central Bank Interventions in the Euro Market

Rasmus Fatum, Jesper Pedersen

This paper investigates the real-time effects of foreign exchange intervention using official intraday intervention data provided by the Danish central bank. Denmark is currently pursuing an active...

Do Exchange Rates Respond to Day-to-Day Changes in Monetary Policy Expectations When No Monetary Policy Changes Occur?

Fatum, Rasmus, Scholnick, Barry

This paper addresses whether exchange rates respond to changes in expectations of future U.S. monetary policy when no actual monetary policy changes occur. We employ data on Federal funds futures...

ECB Foreign Exchange Intervention and the EURO: Institutional Framework, News, and Intervention

Rasmus Fatum, Michael Hutchison

Using a unique intervention “news†data set, this paper investigates the impact of ECB intervention and intervention-related news (newswire reports) on the Euro exchange rate. A time-series...

On the effectiveness of sterilized foreign exchange intervention.

Rasmus Fatum

This paper addresses the question of whether sterilized central bank intervention systematically affects exchange rates. Furthermore, the paper analyzes whether a central bank can conduct its...

ECB Foreign Exchange Intervention and the Euro: Institutional Framework, News and Intervention.

Rasmus Fatum, Michael M. Hutchison

Using a unique intervention "news" data set, this paper investigates the impact of ECB intervention and intervention-related "news" (newswire reports) on the euro exchange rate. A time-series study...

Is Foreign Exchange Market Intervention an Alternative to Monetary Policy? Evidence from Japan.

Rasmus Fatum, Michael M. Hutchison

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until...

Do Exchange Rates Respond to Day-to-Day Changes in Monetary Policy Expectations? Evidence from the Federal Funds Futures Market.

Rasmus Fatum, Barry Scholnick

This paper is the first to utilize the informational content embodied in Federal funds futures contracts for extracting day-to-day changes in expectations of future US monetary policy, in the context...

One Monetary Policy and Eighteen Central Bankers: The European Monetary Policy as a Game of Strategic Delegation.

Rasmus Fatum

This paper employs a multi-country delegation model of a single monetary policy and argues that a decision making mechanism based on the median voter theorem is too restrictive for capturing...

Foreign Exchange Intervention and Monetary Policy in Japan, 2003-04

Rasmus Fatum, Michael M. Hutchison

This article examines the rationale behind the massive increase in Japanese foreign exchange market intervention operations in 2003-04, and evaluates its effectiveness both in limiting yen exchange...

Rules versus Discretion in Foreign Exchange Intervention: Evidence from Official Bank of Canada High-Frequency Data

Rasmus Fatum, Michael R. King

This paper analyzes official, high-frequency Bank of Canada intervention and exchange rate data (the latter quoted at the end of every 5-minute interval over every 24-hour period) over the January...

Daily Effects of Foreign Exchange Intervention: Evidence from Official Bank of Canada Data

Rasmus Fatum

This paper analyzes the effects of official, daily Bank of Canada intervention in the CAD/USD exchange rate market over the January 1995 to September 1998 period. Using an event study methodology and...

Evaluating Foreign Exchange Market Intervention: Self-Selection, Counterfactuals and Average Treatment Effects

Rasmus Fatum, Michael M. Hutchison

Studies of central bank intervention are complicated by the fact that we typically observe intervention only during periods of turbulent exchange markets. Furthermore, entering the market during...

Is Intervention a Signal of Future Monetary Policy? Evidence from the Federal Funds Futures Market.

Rasmus Fatum, Michael M. Hutchison

Sterilized foreign exchange market intervention may affect the exchange rate if it signals future monetary policy actions. Signalling will be effective if the central bank backs up intervention with...

Is Sterilized Foreign Exchange Intervention Effective After All? An Event Study Approach.

Rasmus Fatum, Michael M. Hutchison

Central banks actively engage in sterilized foreign exchange market intervention despite numerous empirical studies indicating that these operations do not systematically affect the exchange rate....

The Effectiveness of Official Foreign Exchange Intervention in a Small Open Economy: The Case of the Canadian Dollar

Michael R. King, Rasmus Fatum

The Bank of Canada is one of very few central banks that has made records of the intraday timing of its intervention operations available to researchers. The authors investigate the effectiveness of...

Post-Plaza intervention in the DEM/USD exchange rate

Rasmus Fatum

In this paper, whether specific methods of conducting central bank interventions increase the likelihood of achieving its objectives in analysed. Daily Bundesbank and Fed intervention data covering...

Is sterilised foreign exchange intervention effective after all? an event study approach

Rasmus Fatum, Michael M. Hutchison

This study provides evidence supporting the effectiveness of sterilised foreign exchange market intervention by central banks using an event study approach. An event study framework is better suited...

Effectiveness of official daily foreign exchange market intervention operations in Japan

Rasmus Fatum, Michael Hutchison

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until...

Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan

Rasmus Fatum, Michael Hutchison

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until...

Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan

Rasmus Fatum, Michael Hutchison

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. Up until...

Do Exchange Rates Respond to Day-to-Day Changes in Monetary Policy Expectations? Evidence from the Federal Funds Futures Market

Rasmus Fatum, Barry Scholnick

This paper is the first to utilize the informational content embodied in Federal funds futures contracts for extracting day-to-day changes in expectations of future US monetary policy, in the context...

Is Intervention a Signal of Future Monetary Policy? Evidece from the Federal Funds Futures Market.

Fatum, Rasmus, Hutchison, Michael

Sterilized foreign exchange market intervention may affect the exchange rate if it signals future monetary policy actions. Signaling will be effective if the central bank backs up intervention with...

Monetary policy news and exchange rate responses: Do only surprises matter?

Fatum, Rasmus, Scholnick, Barry

We use data from the Federal Funds Futures market to show that exchange rates respond to only the surprise component of an actual US monetary policy change and we illustrate that failure to...

Evaluating Foreign Exchange Market Intervention: Self-selection, Counterfactuals and Average Treatment Effects

Rasmus Fatum, Michael M. Hutchison

Estimating the effect of official foreign exchange market intervention is complicated by the fact that intervention at any point entails a self-selection choice made by the authorities and that no...

Daily effects of foreign exchange intervention: Evidence from official Bank of Canada data

Fatum, Rasmus

This paper analyzes the effects of official, daily Bank of Canada intervention in the CAD/USD exchange rate over the 1995-1998 period. Using an event study methodology and different criteria for...

Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan

Rasmus Fatum, Michael Hutchison

Japanese official intervention in the foreign exchange market is of by far the largest magnitude in the world, despite little or no evidence that it is effective in moving exchange rates. This paper...

Official Japanese Intervention in the JPY/USD Exchange Rate Market: Is It Effective and Through Which Channel Does It Work?

Rasmus Fatum

This paper investigates whether official Japanese intervention in the JPY/USD exchange rate over the January 1999 to March 2004 time period is effective. By integrating the official intervention data...

Do Both U.S. and Foreign Macro Surprises Matter for the Intraday Exchange Rate? Evidence from Japan

Rasmus Fatum, Michael Hutchison, Thomas Wu

We investigate the effects of both U.S. and Japanese news surprises, measured as the difference between macroeconomic announcements and preceding survey expectations, on the intraday JPY/USD exchange...

Official Japanese Intervention in the JPY/USD Exchange Rate Market: Is It Effective and Through Which Channel Does It Work?

Rasmus Fatum

This paper investigates whether official Japanese intervention in the JPY/USD exchange rate over the January 1999 to March 2004 time period is effective. By integrating the official intervention data...

Real-time effects of central bank intervention in the euro market

Fatum, Rasmus, Pedersen, Jesper

This paper investigates the real-time effects of sterilized foreign exchange intervention using official intraday intervention data provided by the Danish central bank. Our analysis employs a...