[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-323112-105":59,"doc-detail-323112-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","exchange-market-intervention-and-us-monetary-policy-economic-commentary","Exchange-Market Intervention and U.S. Monetary Policy - Economic Commentary","","The paper analyzes how exchange-market intervention interacts with U.S. monetary policy and whether central banks can pursue exchange-rate objectives without undermining domestic goals. It argues intervention generally cannot be separated from monetary policy: non-sterilized versus sterilized intervention matters, and compatibility with price stabilization depends on the underlying economic disturbance. It also explains institutional tensions between the Treasury and the Federal Reserve and derives three conclusions regarding effectiveness, credibility, and incentives for international cooperation.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/exchange-market-intervention-and-us-monetary-policy-economic-commentary/323112/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/exchange-market-intervention-and-us-monetary-policy-economic-commentary/323112.png","ImageObject",300,407,{"name":92,"@type":93},"Ophelia","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-23","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":34},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is the main issue the paper addresses regarding exchange-rate interventions?","Question",{"text":112,"@type":113},"The paper examines whether central banks can influence exchange rates through intervention without conflicting with their domestic monetary policy objectives, such as price stability.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How does the paper define non-sterilized and sterilized intervention?",{"text":117,"@type":113},"Non-sterilized intervention alters a country’s money supply, while sterilized intervention offsets domestic monetary effects so it has no domestic monetary policy implications.",{"name":119,"@type":110,"acceptedAnswer":120},"What do the studies summarized in the paper suggest about sterilized intervention’s long-term impact?",{"text":121,"@type":113},"The findings indicate sterilized intervention generally has no permanent effect on exchange rates, meaning central banks cannot rely on it to maintain lasting exchange-rate outcomes.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},323112,1790156804,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":34,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},7971461741311,"https://ap-avatar.wpscdn.com/avatar/74000253aff267980c6?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779345379180704826","by Owen F.Humpage  \n个  \nIhe United States often buys or sellsforeign currencies,hoping to influencedollar exchange rates.The most visibleresult of these transactions,however,seems to be a continuing debate abouttheir appropriateness.  \nMany economists contend that centralbanks can influence foreign exchangerates only by altering the relative money-growth rates among countries.If,forexample,the United States wishes todepreciate the dollar relative to the Ger-man mark,either the United States mustloosen its monetary policy,or Gemanymust tighten,or both.This can pose aproblem,however,if domestic monetarypolicy objectives,such as price stability,are not conducive to an easing in theUnited States or a tightening in Gemany.  \nThe potential for conflict between inter-vention and monetary policy arises be-cause intervention generally does not af-ford central banks an additional policyinstrument with which to pursue anexchange-rate target independent ofdomestic monetary policy objectives.Consequently,the implied willingness ofcentral banks to trade off among possibleconflicting objectives could reduce theiroverall credibility.When,for example,the Federal Reserve sells dollars inex-change markets while attempting toeliminate inflation,it risks weakening thecredibility of its price-level objective.  \nThe controversy also extends to the in-stitutional arrangements for interven-tion.In the United States,the Treasury  \n# Exchange-Market Interventionand U.S.Monetary Policy\n\nDepartment and the Federal ReserveSystem share responsibility for inter-vention,with primary authority vestedin the former.Some fear that becausethe Treasury and the Federal Reserveoften disagree about monetary policy,their common responsibilties for inter-vention could compromise the Fed'smonetary policy independence andlessen its credibility.  \nThis Economic Commentary reviewsthe debate about intervention and drawsthree conclusions:First,with few ex-ceptions,centra banks cannot divorcetheir intervention activities from theirmonetary policies.Second,exchange-rate stabilization does not always con-flict with price stabilization;their com-patibility depends on the nature of theunderlying economic disturbance.Third,because of the monetary natureof exchange rates,the Treasury hasstrong incentives both to encourage theFederal Reserve's participation in inter-vention and to seek intermational coop-eration for the effort.  \n## ■ Definitions and Distinctions\n\nDebates about intervention center onan important distinction between non-sterilized and sterilized intervention.When,for example,the FederalReserve buys German marks with dol-lars,the transaction increases the sup-ply of dollars,other things being equal.Economists refer to intervention thatalters a country's money supply as non-sterilized intervention.A central bankcan,however,neutralize the effects of  \nOctober 1,1991  \nExchange market intervention di-vorced from monetary policy is usuallyineffective,but intervention linked tomonetary policy can interfere withdomestic policy objectives.The authorargues that a central bank interested inmaintaining pricestability gains littlefrom intervening,particularly when itintervenes jointly with fiscal authorities.  \nits foreign-currency transactions on thenation's money supply by simultaneouslyundertaking offsetting open market opera-tions.In our example,the Fed could sellU.S.Treasury securities to offset thegreater supply of dollars resulting frompurchases of marks.Economists refer toforeign-curency transactions that do notalter a country's money supply as steril-ized intervention.  \nThis distinction is animportant one be-cause if sterilized intervention couldalter exchange rates,central bankscould pursue exchange-rate objectivesindependent of their domestic mone-tary policy goals.The Federal Reserve,for example,could depreciate the dol-lar relative to the German mark withoutthe danger of increasing U.S.inflation.  \nMost countries,including the UnitedStates,do not completely divorce ","cbCaimvPaVvx4IYo","https://ap.wps.com/l/cbCaimvPaVvx4IYo","pdf",1320814,"English","# Exchange-Market Intervention and U.S. Monetary Policy\n## Definitions and Distinctions\n## Sterilized Intervention","[{\"question\":\"What is the main issue the paper addresses regarding exchange-rate interventions?\",\"answer\":\"The paper examines whether central banks can influence exchange rates through intervention without conflicting with their domestic monetary policy objectives, such as price stability.\"},{\"question\":\"How does the paper define non-sterilized and sterilized intervention?\",\"answer\":\"Non-sterilized intervention alters a country’s money supply, while sterilized intervention offsets domestic monetary effects so it has no domestic monetary policy implications.\"},{\"question\":\"What do the studies summarized in the paper suggest about sterilized intervention’s long-term impact?\",\"answer\":\"The findings indicate sterilized intervention generally has no permanent effect on exchange rates, meaning central banks cannot rely on it to maintain lasting exchange-rate outcomes.\"}]","Exchange-Market Intervention and U.S. Monetary Policy - Economic Commentary | PDF",1789964355,13]