Question: To weaken the dollar using sterilized intervention, the Fed would dollars and simultaneously Treasury securities (recall if the Fed buys treasuries, it pays investors with
To weaken the dollar using sterilized intervention, the Fed would dollars and simultaneously Treasury securities (recall if the Fed buys treasuries, it pays investors with dollars putting them into the market, if it sells treasures, the market pays the Fed with dollars, removing them from the market) O buy, sell sell, boy buy, buy O sell; sell
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