Exchange Market Pressure
Currencies can be under severe pressure in the foreign exchange market, but in a fixed (or managed) exchange rate regime that is not fully visible via the change in the exchange rate. Exchange market pressure (EMP) is a concept developed to nevertheless measure the pressure in such cases. This article describes EMP and its measurement.
KeywordsCentral bank Currency crisis Exchange rate regime Interest rate Intervention Monetary policy
JEL ClassificationsE52 E58 F31 F33
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