In October 1979, the U.S. central bank (the Federal Reserve System) announced it would play a less

Question:

In October 1979, the U.S. central bank (the Federal Reserve System) announced it would play a less active role in limiting fluctuations in dollar interest rates. After this new policy was put into effect, the dollar’s exchange rates against foreign currencies became more volatile. Does our analysis of the suggest any connection between these two events?

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...