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|Title:||Optimal Intervention Rules: A Multi-Market Approach|
|Author(s):||Ma, Kwan Chen|
|Department / Program:||Finance|
|Degree Granting Institution:||University of Illinois at Urbana-Champaign|
|Abstract:||The various versions of intervention policy can be interpreted either to fix the price or the quantity of the market but not both. It is the objective of this paper to determine the optimal degree of official intervention which stabilizes the market.
The structure of the model is based on a microeconomic framework under a pre-determined goal and other relevant conditions. The policy rules derived accordingly indicate that the policymakers should absorb the shock originating outside the stabilize market by fixing the price of the other markets. On the other hand, shocks should be passed out of the stabilized market by fixing the quantity of this market. The complete set of rules are developed for different cases and applied to the policy selections of foreign exchange market and domestic money market.
Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 1983.
|Date Available in IDEALS:||2014-12-16|