1. how does strengthen dollar curb inflation?
2. Isn't the value of the currency determine by GDP of a country? How can central bank adjust it as and when they wish?
3. When does the interest rate gets adjusted?
4. What is the impact on the economy if the interest rate is adjusted? 1. makes stuff made here cost more in other countries. 2. it's a believe in what the currency is worth- will that currency be stronger or weaker than other currencies tomorrow? see pt 1 The central bank rate is an internal country control. It sets - can money that country's currency be borrowed for more or less today than the next time the rater is adjusted. 3. When the Fed ( a group of governement treasury advisors have a meeting and announce that the Billionaires in that Central Bank controlled country tells them to, usually quarterly, every 3 months. The value (purchasing power of saved money) money numbers stored at that instant in that country's system can buy more stuff that country controls (goods) or less related to all other countries that have central banks. If your country doesn't have a Central Bank you have to play off the values of the other countries. Citizens become richer or poorer vs. anyone that has savings in that currency. Inflation makes savings less valuable and people need savings for stability. Stability is what the governments focus on; not ending poverty. Mantain the ruling class' power / slots = maintaining safe orderly stability/ low inflation rate of (2-3% year), no deflation.
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