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Disagree. The fed does not devalue currency. They set interest rate policy on reserves aka the federal funds rate. Biggest factor in supply and demand for a cu
by bubbleRefuge 15y ago
Disagree. The fed does not devalue currency. They set interest rate policy on reserves aka the federal funds rate. Biggest factor in supply and demand for a currency is fiscal policy. Second biggest factor is trade balance and the desirability of foreigners to save the given currency.
- gsmaverick 15y agoIncreasing the money supply devalues the currency even if that's not the intended goal; that is basic economics.
- tsotha 15y ago"Debase" is probably a better word than "devalue" in this context.