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Unconventional monetary policy and the dollar

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  • Reuven Glick
  • Sylvain Leduc

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.

Suggested Citation

  • Reuven Glick & Sylvain Leduc, 2013. "Unconventional monetary policy and the dollar," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue apr1.
    • Handle: RePEc:fip:fedfel:y:2013:i:apr1:n:2013-09
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    References listed on IDEAS

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    1. Glick, Reuven & Leduc, Sylvain, 2012. "Central bank announcements of asset purchases and the impact on global financial and commodity markets," Journal of International Money and Finance, Elsevier, vol. 31(8), pages 2078-2101.
    2. Kuttner, Kenneth N., 2001. "Monetary policy surprises and interest rates: Evidence from the Fed funds futures market," Journal of Monetary Economics, Elsevier, vol. 47(3), pages 523-544, June.
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    Cited by:

    1. Mamaysky, Harry, 2018. "The time horizon of price responses to quantitative easing," Journal of Banking & Finance, Elsevier, vol. 90(C), pages 32-49.
    2. Ordu-Akkaya, Beyza Mina & Soytas, Ugur, 2020. "Unconventional monetary policy and financialization of commodities," The North American Journal of Economics and Finance, Elsevier, vol. 51(C).

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    Keywords

    Dollar; Monetary policy;

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