Abstract: We establish an exchange rate determination model for central banks' in terventions in financial markets. The model shows that central banks can adjust exchange rate by several policy instruments and that different instruments may have different effects on exchange rate determination. It specifies potential policy instruments for central banks as well as their policy effects. Based on these effects, feasible matches of policy instruments in contingent intervention are put forth.

Key words: Intervention of exchange rate, Financial market, Exchange rate determination

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