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Sterilized Intervention in Emerging-Market Economies: Trends, Costs, and Risks

Staff Discussion Paper 2008-4 Robert Lavigne
The author examines recent trends in sterilized intervention among emerging-market economies, to determine the size and extent of this policy in relation to earlier periods of heavy reserve accumulation. He then analyzes whether the domestic costs and risks of substantial and prolonged sterilization are beginning to manifest themselves.