Cleveland Fed: Fed’s abandonment of FX controls justified
A Cleveland Federal Reserve paper published on Saturday says the Federal Reserve's abandonment of foreign exchange controls in the 1990's helped stabilise prices and preserve monetary policy independence.
The authors, Michael Bordo, Owen Humpage, and Anna Schwartz, study the impact of US foreign exchange market intervention during the Volcker-Greenspan Era from 1981 to 2000, and show that the Fed abandoned foreign-exchange market intervention because it conflicted with the system's commitment to
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