This comment will explain the differences and respecify some of the equations to dispel any misconceptions in Humpage's earlier article of the same title.

An analysis of the forecast value of U.S. interventions in the foreign exchange market over the past seven years, which finds that official transactions by U.S. monetary authorities generally did not seem to improve the efficiency with which the foreign exchange market obtained information...

An analysis of U.S. foreign exchange-market intervention and its effect on dollar depreciation, finding there is no systematic relationship between intervention and daily exchange-rate movements.

A look at the pros and cons of currency boards as an institution for providing monetary credibility in developing countries.

An illustration of the cost and employment effects of Japanese voluntary export restraints on new-car imports to the U.S.

A discussion of the institutional aspects of U.S. exchange-market intervention, from the decision to intervene to investment of the proceeds, focusing on the interactions between the U.S. Treasury and the Federal Reserve System.

A review of three channels through which central bank intervention could alter exchange rates, concluding that sterilized intervention is a very limited policy tool.

A review of recent literature on central-bank intervention in exchange markets, finding some qualified support for the power of intervention to influence market expectations, but finding little evidence to support the interventionist policy the G-3 countries have conducted in recent years.

A challenge to the commonly held belief that aggregate U.S. fiscal policy measures, especially the federal budget deficit, bear a simple and direct causal relationship with U.S. interest rates, exchange rates, and the trade balance, concluding that fiscal policies can--but need not--cause trade...

A nontechnical survey of research undertaken during the last decade on international macroeconomic policy coordination that clarifies the sophisticated mathematics inherent in these studies.