Title: The case for foreign exchange intervention
Description: "This paper argues that major governments should act as long-term speculators by intervening to profit from floating exchange rates reversion to fundamentals.  Such transactions would improve welfare by transferring risk from private agents to the risk-tolerant government.  Interventions explicitly designed to profit the intervening authority would be more likely to be successful and, to the extent that they are, would reduce resource misallocation"--Federal Reserve Bank of St. Louis web site.
Subjects: Central Banks and banking, Foreign exchange administration, Foreign exchange rates