Does central bank intervention stabilize foreign exchange rates?

Since the adoption of a flexible exchange rate system in 1973, central banks of most industrialized countries have continued to intervene in foreign exchange markets. One reason is that exchange rate volatility has increased. To reduce volatility, many European countries have agreed to keep exchange rates within a band around a target exchange rate, implementing this policy by intervening in foreign exchange markets when necessary. Even without an explicit exchange rate commitment, countries such as the United States and Japan have intervened in foreign exchange markets to help stabilize exchange rates.> Opinions differ on whether central banks can stabilize exchange rates. Some analysts believe central bank intervention can reduce exchange rate volatility by stopping speculative attacks against a currency. Other analysts, though, believe central bank intervention may increase volatility if the intervention contributes to market uncertainty or encourages speculative attacks against the currency.> Bonser-Neal presents empirical evidence on this controversy. Her evidence suggests that central bank intervention does not generally reduce exchange rate volatility. Rather, central bank intervention typically appears to have had little effect on volatility.Banks and banking, Central ; Foreign exchange rates

Does the yield spread predict real economic activity? : a multicountry analysis

This article evaluates the ability of the yield spread to forecast real economic activity in 11 industrial countries. The first section of this article defines the yield spread and explains why the spread may be a useful predictor of real economic activity. The second section describes the data and criteria used to evaluate the predictive power of the yield spread. The third section examines whether yield spreads have reliably forecast real economic activity in the 11 countries, using several measures of real economic activity and alternative forecast horizons. The empirical results indicate the yield spread is a statistically and economically significant predictor of real economic activity in several industrial countries besides the United States. In addition, the yield spread forecasting model generally outperforms two alternative forecasting models in predicting future real GDP growth.Economic conditions - United States ; Interest rates ; Forecasting ; Gross domestic product

Encounter and the Christ Event in the Theology of Ronald Gregor Smith

The introduction highlights the existential loneliness out of which Gregor Smith writes. It points to his discovery and development of transcendence within the world. It notes the influence of Eliot's image of waiting and Jasper's concept of European man

A statistical study of Illinois high schools

Thesis (B.S.)--University of Illinois, 1901.Typescript.Includes bibliographical references (plate [1] at end)

The development of Marlow as character in four tales by Joseph Conrad: Youth, Heart of Darkness, Lord Jim and Chance\u27\u27

This paper is an attempt to demonstrate that Charles Marlow, besides serving as a technical device for recording Youth , Heart of Darkness , and Lord Jim , is also a significant, complex character who becomes increasingly aware of the nature of the romantic conscience and of meaning in life

Global Aviation System: Towards Sustainable Development

Aviation around the world has integrated into a global system. As the integration process continues, more aspects and levels of it need to be lead towards the sustainable development of the whole system via advancing strategic management, global communication proficiency, and technological expertise. It becomes essential to enrich global language (English) proficiency with cross-cultural communication competence not only for communication in the air but also for airport security, passenger and cargo services, aircraft and equipage engineering, building, and maintenance. Nowadays lower levels of management need more advanced strategic thinking and problem solving skills, and higher levels of management need global vision and global systems thinking skills. A strategy that the United States National Research Council developed for the Federal Aviation Administration\u27s management of the growing technological advance and investment to the aviation industry prioritizes the goal of sustainable development of the global aviation system over the making money goals of the global scale contractors within the industry. This is an example of a global scale sustainable strategy within the global system