At the crudest level, what do you suppose would happen if the U.S. Treasury/Federal Reserve suddenly decide that every dollar-denominated account of $n got a "stimulus payment" of $2n?
That’s a very indirect way to devalue a currency for foreign exchange purposes. Sure, you’d be massively increasing that supply, but it’s doesn’t necessarily follow that said supply would flow directly into forex markets.
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At the crudest level, what do you suppose would happen if the U.S. Treasury/Federal Reserve suddenly decide that every dollar-denominated account of $n got a "stimulus payment" of $2n?
That’s a very indirect way to devalue a currency for foreign exchange purposes. Sure, you’d be massively increasing that supply, but it’s doesn’t necessarily follow that said supply would flow directly into forex markets.
You mean a bit like this
https://fred.stlouisfed.org/graph/?g=KT86
but overnight, rather than over several years?