The globalization of money weakens the Fed's control over the money supply.

Question

Quizplus · Accepted Answer

The globalization of money has increased the flow of capital across borders, making it more challenging for the Fed to control the money supply solely through domestic policy. The Federal Reserve's policies can have repercussions on global financial markets and vice versa. Additionally, the ability for individuals and corporations to move money across borders quickly and easily can also affect the Fed's ability to control the money supply.

The Globalization of Money Weakens the Fed's Control Over the Money