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 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.

An analysis of possible effects on the U.S. economy of rapid depreciation of the foreign-exchange value of the dollar, that includes discussion on interest rates, prices, real GNP, and potential problems for the Federal Reserve System.

Sixteen countries now treat the U.S. dollar as legal tender. Although dollarizing can help emerging-market countries gain monetary credibility and avoid currency crises, many do not want to give up the seigniorage revenues associated with issuing their own fiat currency. This article offers a...

A discussion of factors that affect determination of the dollar's value in foreign-exchange markets, with an emphasis on various interpretations of the concept of equilibrium.

A study of U.S. intervention in the foreign exchange market between 1984 and 1987, concluding that exchange-rate stability among nations depends on fundamental macroeconomic policies, not intervention.

An examination of causality between dollar exchange-rate movements and U.S. price levels as described by the relative purchasing power parity theory, with a discussion of channels of price pressure and of the Hooper-Lowrey method of estimating future trends of the dollar.

Analysts caution that rapid foreign economic growth could induce a depreciation of the dollar, as international investors diversify their portfolios in favor of higher returns abroad. Although we cannot establish a simple relationship between foreign growth and the dollar, we can conclude that...

An investigation of whether the G-3 nations (Germany, Japan, and the U.S.) successfully maintained target zones following the G-7's February 1987 Louvre meeting. Using daily, official intervention data and simultaneous-equation techniques, the authors determine that the G-3 reacted in a manner...