A Survey on the Effects of Sterilized Foreign Exchange Intervention

Number: 
862
Published: 
Classification JEL: 
E52, E58, F31
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

In this paper we survey prominent theories that have shaped the literature on sterilized foreign exchange interventions. We identify three main strands of literature: 1) that which advocates the use of sterilized interventions; 2) that which deems sterili