Epilogue: foreign-exchange-market operations in the twenty-first century
AbstractForeign-exchange operations did not end after the United States stopped its activist approach to intervention. Japan persisted in such operations, but avoided overt confl ict with its monetary policy. With the onset of the Great Recession, Switzerland has transacted in foreign exchange both for monetary and exchange rate purposes, and key central banks have used swap facilities to extended their lender-of-last-resort functions. Developing and emerging-market economies continue to intervene, but their actions may hamper the development of their own foreign-exchange markets. China’s undervalued exchange rate is producing inflation and real appreciation, despite China’s efforts to sterilize its reserve accumulation.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 1207.
Date of creation: 2012
Date of revision:
Other versions of this item:
- Michael D. Bordo & Owen Humpage & Anna J. Schwartz, 2012. "Epilogue: Foreign-Exchange-Market Operations in the Twenty-First Century," NBER Working Papers 17984, National Bureau of Economic Research, Inc.
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
- N2 - Economic History - - Financial Markets and Institutions
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