4min chapter

Forward Guidance cover image

Does The Fed Control The Dollar? | Jeff Snider & Joseph Wang

Forward Guidance

CHAPTER

Does the Federal Reserve Control the Dollar System?

The Federal Reserve has a lot of influence on the dollar in a couple ways. No matter where you are in the world when you do a dollar transaction at some point It's set out on the books of the Federal Reserve through reserves. When the fed wants to kick someone out of the dollar system like iran it would say you thanks you can no longer clear any dollar payments If the party is it's falling around so then boom you're frozen out of thedollar system So it has I mean it has some control, but not absolute You can't control for example the quantity of dollars in the world that as we've learned through the euro dollar systems in the 1980s.

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