BIS on the role FX intervention plays in modern monetary policy ...Middle East

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BIS on the role FX intervention plays in modern monetary policy
A paper published on Sunday by the Bank for International Settlements. This might make some interesting weekend reading. Or not. Some of the stuff on FX interventions is of interest right now, looking at you Bank of Japan! Key takeaways Since the turn of the 21st century, a series of extraordinary events – major financial crises, a pandemic and an unexpected surge in inflation – have profoundly shaped the conduct of monetary policy. This tumultuous experience points to several lessons regarding what monetary policy can and cannot deliver. They concern the ability to control runaway inflation, the power to stabilise the financial system at times of crises, the limits to forceful and prolonged

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