Exchange Rate Management: Theory and Evidence

An examination of the economic justification for foreign exchange market intervention, the potential for such intervention to stabilize an economy and the distinction between sterilized and non-sterilized intervention.

Inhalt
The case for exchange rate management; exchange rate management and stabilization policy; instruments of exchange rate management; exchange rate management by the UK 1973-89; guidelines for exchange rate policy. Appendices: solution of the model under fixed and floating exchange rates; summary table of results; stability and rates of change; sources.