Exchange Rate Considerations- DB4 Essay Example | Topics and Well Written Essays - 500 words

Exchange Rate Considerations- DB4 - Essay ExampleA stable money interpret plays a crucial role in economical growth. Excessive circulation of currency results in inflation mend an insufficient circulation of currency makes it more difficult for consumers and firms to obtain credit to finance large purchases and business expansions. given over that the United States, the European Union, and Japan are the world richest economies as at the time of the ranking, Ben Bernanke, Jean-Claude Trichet, and Masaaki Shirakawa have gigantic influence on the stability and growth of the global economy. In the United States, the Federal Reserve frame (Fed) controls the monetary policy by the Federal Open Market Committee with Mr. Ben S. Bernanke as the Chairman. As mentioned above, the eventual(prenominal) goal of the monetary policy actions of the FRS is to promote sustainable economic growth and stability through control of the availability of currency and credit. Whatever affects the flow of currency ultimately affects the interest rates and the economic performance.