Due to intervention in the foreign exchange market, any pressure on the external account of a country could be absorbed either by a change in reserves or by a change in the exchange rate. In this paper we employ Girton and Roper's EMPM model to investigate the experience of G7 countries. The...

Proponents of vehicle buyback programmes maintain that the earlier retirement of older vehicles will reduce pollution, increase income for lower income households and stimulate the automobile industry. This article provides a brief assessment of costs and benefits of vehicle buyback programmes....

Under the current system of managed float exchange rates, large countries are able to absorb changes in their balance-of-payments by either manipulating international reserves to sterilize capital flows or by accepting changes in their exchange rates. In this system, the monetary authorities of...