Journal Article

Unconventional monetary policy and the dollar

Abstract: Although the Federal Reserve does not target the dollar, its announcements about monetary policy changes can affect the dollar?s exchange value. Before the 2007-09 financial crisis, the dollar?s value generally fell when the Fed lowered its target for the federal funds rate. Since the crisis, the Fed?s announcements of monetary policy easing through unconventional means have had similar effects on the dollar?s exchange rate.

Keywords: Dollar; Monetary policy;

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Bibliographic Information

Provider: Federal Reserve Bank of San Francisco

Part of Series: FRBSF Economic Letter

Publication Date: 2013

Order Number: 09