Download This PaperU.S. Monetary-Policy Evolution and U.S. Intervention
13 Pages Posted: 28 Oct 2011
Date Written: October 27, 2011
Abstract
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.
Keywords: Trilemma, central-bank independence, intervention, monetary policy, swap lines, warehousing
JEL Classification: F3, N1, N2
Suggested Citation: Suggested Citation
Bordo, Michael D. and Humpage, Owen and Schwartz, Anna J., U.S. Monetary-Policy Evolution and U.S. Intervention (October 27, 2011). FRB of Cleveland Working Paper No. 11-27, Available at SSRN: https://ssrn.com/abstract=1950308 or http://dx.doi.org/10.2139/ssrn.1950308
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