This article first reviews methods of foreign exchange intervention and then presents evidence - focusing on survey results - on the mechanics of such intervention. Types of intervention, instruments, timing, amounts, motivation, secrecy and perceptions of efficacy are discussed.

Svensson (2003) argues strongly that specific targeting rules*first order optimality conditions for a specific objective function and model*are normatively superior to instrument rules for the conduct of monetary policy. That argument is based largely upon four main objections to the latter plus...

Global Interdependence Center, Philadelphia, PA. June 30, 2009

Delivered at the Swedbank Economic Outlook Seminar, Stockholm, Sweden. May 27, 2010

Presentation at the Philadelphia Fed Policy Forum, Philadelphia - Nov. 30, 2001

Presentation to the First Conference of the Monetary Stability Foundation at the Regional Office of Deutsche Bundesbank, Frankfurt, Germany - Dec. 5, 2002

This paper investigates the effectiveness of forward guidance for the central banks of four countries: New Zealand, Norway, Sweden, and the United States. We test whether forward guidance improved market participants’ ability to forecast future short-term and long-term rates. We find that...

An increasing number of central banks implement monetary policy via two standing facilities: a lending facility and a deposit facility. In this paper we show that it is socially optimal to implement a non-zero interest rate spread. We prove this result in a dynamic general equilibrium model...