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 test of whether the anticipation of G-3 (Germany, Japan and the U.S.) central-bank intervention explains wider bid-ask spreads in the spot and forward rates of marks/dollars and yen/dollars, finding little evidence to support the view that spreads widen in anticipation of intervention.

This paper is an annotated bibliography of recent research on foreign exchange market intervention. Most of the paper is devoted to empirical studies of the effectiveness of intervention. ; The paper describes the analytical framework within which most of this research has been conducted....