GMS 724 Chapter 9: GMS 724 - Chapter 9 - Determining Exchange Rates - Part 3

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: HOWARD LIN

Document Summary

Coordinate its action with other central banks or go it alone. Enter the market aggressively to change attitudes about its views and policies. Intervene to reverse, resist, or support a market trend. Call for reassuring action to calm markets. Announce or not announce its operations---be very visible or very discreet. In a managed fixed-exchange rate system, the new york fed would hold foreign-exchange reserves, which it could have built up through the years for this type of contingency. It could sell enough of its yen reserves (make up the difference between q1 and. If a country determines that intervention will not work, it must adjust its currency"s value. In 1989 alone, the george h. w. bush administration bought and sold dollars on 97 days and sold . 5 billion. In the first two and a half years of the clinton administration, the fed intervened in the market by buying dollars on only 18 days, spending about.