When the U.S Federal Reserve lowered nominal interest rates on the dollar as compare to European Central bank lowered on the Euro in the period of 2001-2004.The effect of this decision was that the dollar depreciated against the euro.Since the nominal interest rates on dollar are lower than as compared to that are on Euro.
The Fiscal policy<span> is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy.</span>