U.S. Monetary-Policy Evolution and U.S. Intervention
Michael D. Bordo
Harvard University - Department of Economics; National Bureau of Economic Research (NBER)
Federal Reserve Bank of Cleveland
Anna J. Schwartz
City University of New York (CUNY); National Bureau of Economic Research (NBER) - NY Office
October 27, 2011
FRB of Cleveland Working Paper No. 11-27
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.
Number of Pages in PDF File: 13
Keywords: Trilemma, central-bank independence, intervention, monetary policy, swap lines, warehousing
JEL Classification: F3, N1, N2working papers series
Date posted: October 28, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo2 in 0.485 seconds