The Value of the Dollar Is NOT Out of the Control of Politicians

The NYT bizarrely told readers that the value of the dollar is "almost entirely outside of American politicians’ control," in an pseudo fact check of the Democratic convention speeches last night. This is clearly wrong.

First, the actions of the Federal Reserve Board could have an enormous impact on the value of the dollar. Raising and lowering interest affects the willingness of foreigners to hold dollar denominated assets. This means that whether intended or not, monetary policy will affect...