Dirty floating in emerging markets
Velasco, A.
(2019).
Dirty floating in emerging markets.
Project Syndicate,
(2019).
Dirty floating in emerging markets.
Project Syndicate,
Central banks are supposed to use the interest rate to achieve an inflation target and let the exchange rate float freely. So why do they often intervene in currency markets by buying and selling international reserves, and use a host of other measures to limit their currencies’ volatility?