If a country is an attractive place for foreigners to invest their funds, then that country will have a relatively high exchange rate. If it's an unattractive place, it will have a relatively low exchange rate. Those are the fundamentals that determine the exchange rate in a floating exchange rate system.
Milton FriedmanWhen they so-called 'target the interest rate', what they're doing is controlling the money supply via the interest rate. The interest rate is only an intermediary instrument.
Milton FriedmanI am favor of cutting taxes under any circumstances and for any excuse, for any reason, whenever it's possible.
Milton Friedman