Why is it that in a pure flexible exchange rate system, the foreign exchange market has no direct effects on the money supply Does this mean that the foreign exchange market has no effect on monetary policy ...

There are no direct effects on the money supply because there is no central bank ...

Why is it that in a pure flexible exchange rate system, the foreign exchange market has no

Question:

Why is it that in a pure flexible system, the has no direct effects on the money supply? Does this mean that the has no effect on monetary policy?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars... Foreign Exchange Market
The foreign exchange market (also known as forex, FX or the currency market) is an over-the-counter (OTC) global marketplace that determines the exchange rate for currencies around the world. Participants are able to buy, sell, exchange and...