Foreign Exchange Intervention
Background & Mechanics
- "U.S. Foreign Exchange Intervention," Federal Reserve Bank of New York, Fedpoint #44, October 2003.
- Christopher J. Neely, "The Practice of Foreign Exchange Rate Intervention: Looking Under the Hood," Federal Reserve Bank of St. Louis Review, May/June 2001, pp. 1–10.
Surveys
- Owen F. Humpage, "Government Intervention in the Foreign Exchange Market," Federal Reserve Bank of Cleveland Working Paper 03-15, November 2003.
- Lucio Sarno and Mark P. Taylor, "Official Intervention in the Foreign Exchange Market: Is It Effective, and, If So, How Does It Work?" Journal of Economic Literature, v. 39, September 2001, pp. 839–868.
The two papers above present general overviews of the theoretical and empirical argument for and against official exchange rate intervention. Humpage (2003) focuses more on a policy-makers perspective, and is somewhat more skeptical of the effectiveness of exchange rate intervention than are Sarno and Taylor (2001), who also spend more time exploring the theoretical aspects of intervention.
Additional Perspectives
- Michael Hutchison, "Is Official Foreign Exchange Intervention Effective?," Federal Reserve Bank of San Francisco Economic Letter 2003-20, July 18, 2003.
- Owen F. Humpage, "Why Intervention Rarely Works," Federal Reserve Bank of Cleveland Economic Commentary, February 1, 2000.
- Mark M. Spiegel, "Japanese Foreign Exchange Intervention," Federal Reserve Bank of San Francisco Economic Letter 2003-36, December 12, 2003.