Lecture Money, banking, and financial markets: Chapter 19 - Stephen G. Cecchetti, Kermit L. Schoenholtz
Lecture Money, banking, and financial markets: Chapter 19 - Stephen G. Cecchetti, Kermit L. Schoenholtz
Chapter 19 - Exchange-rate policy and the central bank. In this chapter, students will be able to understand: When capital flows freely across a country's borders, fixing the exchange rate means giving up domestic monetary policy; central banks can intervene in foreign exchange markets; the decision to fix the exchange rate has costs, benefits, and risks; there are a number of examples of exchange-rate systems.