President Pianalto discusses the characteristics of international reserve currencies and the benefits that a country - or a region such as the Eurozone - can enjoy if its currency fulfills that role. She concludes with comments on why global currency competition provides an incentive for central...

An investigation of whether the G-3 nations (Germany, Japan, and the U.S.) successfully maintained target zones following the G-7's February 1987 Louvre meeting. Using daily, official intervention data and simultaneous-equation techniques, the authors determine that the G-3 reacted in a manner...