خلاصه ماشینی:
"The appropriate level of intervention in the foreign exchange market can be discussed in a framework which emphasizes the trade-off between changes in the country’s level of international reserves and minimizes the country’s real exchange rate misalignment.
Taylor (1982), Kearny and McDonald (1986), Tagaki (1991), Almekinders (1996), Im (2001), Garcia (2002), and Ito (2002) are some of the numerous authors that have used change in foreign exchange reserves as a proxy for intervention.
In fact, the central bank is faced with the problem of how to perform foreign exchange reserves management in order to achieve its goal that is the control of real exchange rate misalignments.
Numerous factors such as transaction costs, presence of target zones, and central bank interventions can imply a nonlinear relationship between the exchange rates and the economic fundamentals [Bereau, et al, 2008].
So the F matrix in feedback rule is The optimal rule from dynamic programming in this study is as follows Optimal rule, in fact, is an instruction to adjustment of changes in foreign reserves of central bank based on the values of existing variables.
Thus increasing the currency supply in the market by the monetary authorities will cause the real value of foreign exchange to reduce, and exchange rate to return to its equilibrium level.
5. 3 Different scenarios regarding the relative weight In the previous section, to obtain the optimal amount of intervention in the foreign exchange market, half of deviations of real exchange rates from its equilibrium level have been considered."