Disagree. The fed does not devalue currency. They set interest rate policy on re... | Hacker News

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bubbleRefuge on Oct 23, 2011 | parent | context | favorite | on: The Food Bubble (2010)

Disagree. The fed does not devalue currency. They set interest rate policy on reserves aka the federal funds rate. Biggest factor in supply and demand for a currency is fiscal policy. Second biggest factor is trade balance and the desirability of foreigners to save the given currency.

gsmaverick on Oct 23, 2011 | [–]

Increasing the money supply devalues the currency even if that's not the intended goal; that is basic economics.

tsotha on Oct 24, 2011 | [–]

"Debase" is probably a better word than "devalue" in this context.

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