The limitations of foreign-exchange intervention: lessons from Switzerland
Since the mid-1990s, monetary authorities in most large developed countries have backed away from foreign-exchange intervention—buying and selling foreign currencies to influence exchange rates. Switzerland’s recent experience goes a long way to illustrate why: Foreign-exchange intervention did not afford the Swiss National Bank with a means of systematically affecting the franc independent of Swiss monetary policy, and it left the Bank exposed to foreign-exchange losses. To affect exchange rates, central banks must change their monetary policies.>
Year of publication: |
2013
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Authors: | Humpage, Owen F. |
Published in: |
Economic Commentary. - Federal Reserve Bank of Cleveland. - 2013, Oct, 13
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Publisher: |
Federal Reserve Bank of Cleveland |
Saved in:
freely available
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