Strained Relations: US Foreign-Exchange Operations and Monetary Policy in the Twentieth Century

Drawing on decades of research using previously confidential data on every official foreign-exchange transaction conducted through the Federal Reserve Bank of New York between 1962 and 1995, Strained Relations reveals the evolution of US policy regarding currency-market intervention and the interaction of currency-market policy with monetary policy. Michael D. Bordo, Owen F. Humpage, and Anna J. Schwartz consider how changing economic and institutional circumstances—most notably the abandonment of the international gold standard—and political and bureaucratic factors affected foreign-exchange policy.