We formulate a mathematical model for the optimal control of the exchange rate. The control consists of a stochastic control, and an impulse control. We give general sufficient conditions for its solution. We consider a government that has two means of avoiding the foreign exchange rate...

Alan Greenspan's paper (March 2010) presents his retrospective view of the crisis. His theme has several parts. First, the housing price bubble, its subsequent collapse and the financial crisis were not predicted either by the market, the FED, the IMF or the regulators in the years leading to...