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Government Influence On Exchange Rates
Government Influence On Exchange Rates
Government Influence On Exchange Rates
Government Influence on
Exchange Rates
Chapter Overview
A. Exchange Rate Systems
C. Government Intervention
b. Exposure of a Pegged
Currency to Exchange Rate
Movements
A. Exchange Rate Systems
6. Dollarization
a. the
t replacement of a foreign currency with U.S.
dollars.
Exhibit 6.2
C. Government Intervention
2. Direct Intervention
a. Reliance on Reserves
b. Nonsterilized versus Sterilized
Intervention
c. Speculating on Direct
Intervention
Forms of Central Bank Intervention
in the Foreign Exchange Market
Exhibit 6.3
C. Government Intervention
3. Indirect Intervention
a. Government Adjustment of
Interest Rates
b. Government Use of Foreign
Exchange Controls
D. Intervention as a Policy Tool
1. Influence of a Weak Home Currency
on the Economy
Exhibit 6.4