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Working Paper

U.S. Monetary-Policy Evolution and U.S. Intervention

The United States all but abandoned its foreign-exchange-market intervention operations in late 1995, when they proved corrosive to the credibility of the Federal Reserve's commitment to price stability. We view this decision as the culmination of the evolution of U.S. monetary policy over the past century from a gold standard to a fiat money regime. The abandonment of intervention was necessary to secure monetary policy credibility.

Suggested Citation

Bordo, Michael D., Owen F. Humpage, and Anna Schwartz. 2011. “U.S. Monetary-Policy Evolution and U.S. Intervention.” Federal Reserve Bank of Cleveland, Working Paper No. 11-27.