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Economic Commentary

The Exchange Stabilization Fund: How It Works

The increased turmoil in international financial markets, starting with the Asian crises of 1997, has led to calls for financial assistance from the wealthier nations. In December 1997, the United States announced a $5 billion commitment toward an international package of financial assistance for South Korea. Two months earlier the United States pledged $3 billion for assistance to Indonesia. In both instances, the Exchange Stabilization Fund (ESF) was to be involved.

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Suggested Citation

Osterberg, William P., and James B. Thomson. 1999. “The Exchange Stabilization Fund: How It Works.” Federal Reserve Bank of Cleveland, Economic Commentary 12/1/1999.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International