It is well known that sunspot equilibria may arise under an interest-rate operating procedure in which the central bank …

swap lines to provide central banks with cover for unwanted, but temporary accumulations of dollars and to provide foreign … central banks with dollar funds to finance their own interventions. The Treasury also began intervening in the market. The …

that environment, sterilized foreign exchange interventions were ineffective in halting the dollar’s decline, but they …

lender of last resort theory) in mounting rescue operations through the central bank. …

What inflation rate should the central bank target? The authors address determinacy issues related to this question in … principle holds in this environment. If the central bank elects to target sector A and responds to price movements in this …

This paper analyzes the restrictions necessary to ensure that the interest rate policy rule used by the central bank …

We document increased central bank independence within the set of industrialized nations. This increased independence …

and the different attitude towards liquidity risk of the individual banks. It turns out that these characteristics are … the way liquidity risk is managed in the banking sector. …

, sterilized foreign-exchange-market intervention did not provide central banks with a mechanism for systematically influencing …The Federal Reserve abandoned foreign-exchange-market intervention because it conflicted with the System’s commitment … responsibility for foreign-exchange intervention only compounded this uncertainty. In addition, many FOMC participants feared that …