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Working Paper

Intervention as Information: A Survey

Research has generally failed to find reliable connections between official exchange-market interventions and exchange rates that are consistent with either a monetary or a portfolio-balance theory of exchange-rate determination. Recently economists have suggested that intervention might sometimes influence exchange rates through its effects on agents’ expectations. This survey discusses newer research that analyzes informational aspects of intervention.

Suggested Citation

Baillie, Richard, Owen F. Humpage, and William P. Osterberg. 1999. “Intervention as Information: A Survey.” Federal Reserve Bank of Cleveland, Working Paper No. 99-18.