Accumulating Foreign Reserves Under Floating Exchange Rates

Accumulating Foreign Reserves Under Floating Exchange Rates
Official accumulation of foreign reserves may be perceived as interventions to influence the exchange rate, undermining the credibility of floating exchange rates and inflation targets. This paper develops a theoretical framework to study the interaction between reserve accumulation and monetary policy. The model uncovers a trade-off between the... READ MORE...

Publication date: April 2008
ISBN 9781451869576
$18.00

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