This would have. Camdessus added, ''I think the authorities can do a lot. Capital flows don't move. . In particular, the U.S. needs to boost its domestic savings. It should be noted that such changes are not made to satisfy 20-year old traders in red suspenders, as is often claimed.
Investors are far more important in the market than traders and speculators.
It's not all reinvested each year, but even a portion of such a huge cache can move markets. And such investment, mostly long-term, is dictated chiefly by economic fundamentals of the host country of the investment. Getting the economic fundamentals right should be supplemented by more official co-operation. For instance, a mechanism could be set up so that intervention in the market would be triggered if the range of trading of a key currency fell above or below prescribed levels. To give such a plan long-term credibility, there would have to be no hesitation to intervene strongly when the level was tested.