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International Economics: Theory and PolicyEleventh EditionChapter 18Fixed Exchange Rates and Foreign Exchange InterventionCopyright ? 2018, 2015, 2012 Pearson Education, Inc. All Rights Reserved
Learning Objectives18.1 Understand how a central bank must manage monetary policy so as to fix its currencys value in the foreign exchange market.18.2 Describe and analyze the relationship among the central bank’s foreign exchange reserves, its purchases and sales in the foreign exchange market, and the money supply.18.3 Explain how monetary, fiscal, and sterilized intervention policies affect the econ
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