What impact does the US government policies have on exchange rates?

Governments play a major role when it comes to exchange rate policy. Using your study materials provided in this module and information in the article U.S. Foreign Exchange Intervention, answer the following questions.

  • Examine US government financial policies and what impact those have on exchange rates.
  • Select a different country and examine what policies the central banks enacted that have impacted exchange rates. (Example: China and currency control)
  • What effects did these exchange policies have on MNEs operating in the country you have selected?