MEASURING EXCHANGE MARKET PRESSURE AND THE DEGREE OF EXCHANGE MARKET INTERVENTION FOR THE GREEK DRACHMA

Author: APERGIS NICHOLAS   ELEFTHERIOU SOPHIA  

Publisher: Routledge Ltd

ISSN: 1016-8737

Source: International Economic Journal, Vol.16, Iss.3, 2002-0, pp. : 135-145

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Abstract

This paper presents exchange market pressure and intervention indices that can be applied as tools for policy analysis in the case of Greece. A small open economy model is presented that helps to assess Greek exchange rate policy, within a framework characterized for a strong preference to eliminate excessive exchange rate volatility to meet the Maastricht criteria of low inflation and a fixed domestic currency. [F31]