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The dollar's depreciation during the early floating rate period, 1973-1981, was a symptom of the Great Inflation. In …
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The Federal Reserve abandoned foreign-exchange-market intervention because it conflicted with the System's commitment to price stability. By the early 1980s, economists generally concluded that, absent a portfolio-balance channel, sterilized foreign-exchange-market intervention did not provide...
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The United States all but abandoned its foreign-exchange-market intervention operations in late 1995, when they proved corrosive to the credibility of the Federal Reserve's commitment to price stability. We view this decision as the culmination of the evolution of U.S. monetary policy over the...
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Reserve's ability to credibly commit to low and stable inflation. This chapter also provides a theoretical discussion of …
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