Chang, Roberto2019-11-012019-11-012019978-956-7421-60-2https://hdl.handle.net/20.500.12580/3870Arguably no issue in International Macroeconomics exhibits more dissonance between academic research and policy practice than foreign-exchange intervention. The dominant view from academia is that sterilized foreign-exchange (FX) intervention has a tiny if any impact on real variables which makes it virtually useless as an independent macroeconomic policy tool. Indeed a large body of empirical literature has struggled to find a consistent link between FX intervention and macroeconomic aggregates including exchange rates. From a theory perspective this is hardly surprising especially since modern dynamic macroeconomic models often predict that FX intervention should be irrelevant (Backus and Kehoe 1989)..pdfSección o Parte de un Documentop. 205-247engAttribution-NonCommercial-NoDerivs 3.0 ChileMACROECONOMÍAArtículo