Intervention in the foreign exchange market in a model with noise traders

All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. * This paper was prepared while the authors were visiting the Hong Kong Institute for Monetary Research during September 2002. The authors are grateful for the financial support and for the excellent research environment provided by the Institute. The views expressed in this paper are those of the authors and do not necessary reflect those of the Hong Kong Institute for Monetary Research, its Council of Advisors, or Board of Directors