A Survey on the Effects of Sterilized Foreign Exchange Intervention

Número: 
862
Publicado: 
Clasificación JEL: 
E52, E58, F31
Palabras clave: 
Sterilized Foreign Exchange Intervention, Impossible Trinity, Portfolio Balance Channel, Signaling Channel

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