This presentation by Yannick Timmer (Federal Reserve Board) is on Intervening against the Fed. It explores this topic by using a US monetary surprise and analysing the daily FXI, exchange rate, firm-level stock prices and currency denominations of the balance sheet in a panel of multiple countries. It identifies FXI via deviation from estimated FXI rule .

This research asks the following questions: “How does US monetary policy spill over to other countries? Can FXI mitigate the effect of US monetary shocks? What’s the channel through which FXIs work?”