SUNY ECO 325 – A well-meaning but misguided policy-maker A well-meaning but misguided policy-maker wants the Fed to pursue both low domestic interest rates and a “strong Dollar” policy (an appreciation of the Dollar). Briefly explain, in no mo

SUNY ECO 325 – A well-meaning but misguided policy-maker

A well-meaning but misguided policy-maker wants the Fed to pursue both low domestic interest rates and a “strong Dollar” policy (an appreciation of the Dollar). Briefly explain, in no more than 3-4 sentences and/or 1-2 diagrams, why these goals are not consistent with each other. Assume, if needed, that monetary policy abroad is unchanged.


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