What is a sterilized intervention

Reference no: EM131303888

Alan Meltzer, an economist at Carnegie Mellon University, once argued: "I have yet to see a study that shows that sterilized intervention, the most common type of intervention used by the Fed in the foreign exchange markets, has any effect on the value of the dollar at all."

a. What is a "sterilized intervention"?

b. How would the Fed carry out a sterilized intervention in the foreign exchange market?

c. Why won't a sterilized intervention have any effect on the value of the dollar?

Reference no: EM131303888

Questions Cloud

How does wal mart attempt to position itself on its website : Compare the atmospherics of Wal-Mart's website to the atmospherics of a traditional Wal-Mart store. Are they consistent? If not, should they be?

What is the molar mass of sodium azide : What is molar mass of sodium azide? How many moles of nitrogen gas must be produced to fill a volume of 65.0 Liters at STP? Why is it necessary to oxidize sodium metal that is produced in the decomposition of sodium azide?

What is reis retail positioning : Why would REI locate many of its stores in freestanding structures rather than in shopping centers?- What is REI's retail positioning, and why is it appropriate for the target market?

List the learning delivery methods you want to use : Describe how you will collaboratively develop and get agreement on a learning plan. List the learning delivery methods you want to use and explain why they are appropriate to the learning goals, and the learning style of participants

What is a sterilized intervention : How would the Fed carry out a sterilized intervention in the foreign exchange market?

What is a foreign exchange market intervention : If the Fed sells $2 billion of foreign assets, what happens to the Fed's holdings of international reserves and to the monetary base?

What is the major task of promotion : What is the major task of promotion? Do firms ever use promotion to accomplish this task and fail? If so, give several examples.

Did the fomc change the interest rate paid on bank reserves : On balance, does the FOMC appear to be more concerned about slow economic growth or high inflation?

Describe the possible objectives of promotion : Describe the possible objectives of promotion, and discuss the circumstances under which each objective might be used.

User Account

All Pages