A stronger dollar can create ripple effects across global markets, from inflation pressures overseas to financial risks in the United States. BWC Vice Chair Rebecca Patterson explores the motivations behind Washington’s recent coordinated intervention with Japan and the growing concerns surrounding currency volatility. She explains how exchange rate policy has become increasingly tied to global financial stability and why policymakers are paying closer attention to potential spillovers.

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All views expressed by members are their own and do not necessarily reflect the views of the Bretton Woods Committee.