Moral Suasion - Interaction of Moral Suasion With Other Policy Instruments - Open Market Transactions and Other Interventions By Central Banks

Open Market Transactions and Other Interventions By Central Banks

Central banks and governments who let markets know what they consider ranges of "appropriate" values for its currency has impacts on the trading of the currency, even if intervention never occurs. Central banks can buy or sell various securities if the currency value falls outside its desired range.

Read more about this topic:  Moral Suasion, Interaction of Moral Suasion With Other Policy Instruments

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