Monetary Policy and Currencies

Central banks use policy to influence the amount of money in the economy, directly affecting us all.

Central banks conduct monetary policy, which directly influences the rate of economic growth and the value of currency.

The U.S. dollar is the world’s most popular currency, and the U.S. economy greatly benefits from that fact.

Supply and demand influence how much a currency is worth.

In a world where financial problems don’t respect borders, how do you coordinate an international response?

In 1956, the Egyptian government seized the Suez Canal from British control. When the United Kingdom, France, and Israel invaded the country, the United States responded by using financial tools.

Questions to check your understanding.