Re: How does injection of money into the economy influence the exchange rate?
The theory is - at the most basic level - one of supply and demand.
The more there is of a product, the less demand there is for it.
The less of a product there is, the greater the perceived value.
All in an ultra-simplistic sense - but that's why a central bank suddenly printing tens and hundreds of billions of extra currency ends up diluting its value.
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