Janet Yellen on monetary policy, currencies, and manipulation

Federal Reserve Chairman Janet Yellen speaks during a news conference after a two-day Federal Open Markets Committee (FOMC) policy meeting in Washington, U.S., September 20, 2017. REUTERS/Joshua Roberts - RC152544FA20

Currency values play a critical role in international trade, influencing the profitability of exporting and importing. Large movements in currency values are often controversial, leading to accusations of “manipulation” or even “currency wars.”

In this episode, Janet Yellen, distinguished fellow in residence with the Economic Studies Program and former chair of the Board of Governors of the Federal Reserve System, discusses with host David Dollar the links among monetary policy, exchange rates, and trade. She cites the “taper tantrum” of 2013 and the Chinese devaluation of 2015 as cases where Fed policy and currency markets influenced each other.

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Dollar and Sense is a part of the Brookings Podcast Network.