foreign exchange intervention

Claire Jones

Foreign exchange intervention has long had a bad reputation; it earned the beggar-thy-neighbour tag back in the 1930s. Now, even actions that aren’t explicitly aimed at influencing the exchange rate, such as the Federal Reserve’s quantitative easing, prompt accusations that central banks are provoking a “currency war”.

A fascinating piece of research, published by the Bank for International Settlements on Tuesday, claims this bad rep is no longer fair. Read more