Strong dollar policy

Have you ever been to a candy store and your mom gave you five dollars to spend? With those five dollars, you can buy five candy bars. But what if the next time you go to the candy store, your mom gives you ten dollars? With that ten dollars, you can buy ten candy bars! This is like the strong dollar policy.

The dollar is like the money we use to buy things in the United States. The strong dollar policy is a rule that says the U.S. government wants the value of the dollar to be strong compared to other countries' money. When the dollar is strong, it means we can buy more things from other countries with the same number of dollars.

For example, if one U.S. dollar can buy one Mexican peso and the dollar is strong, that same dollar could buy two pesos instead. This means people from the United States could buy more things from Mexico for the same amount of money.

When the U.S. government wants to have a strong dollar policy, they might do things like:

- Make sure our economy is doing well, so other countries want to buy American products.
- Make sure the U.S. government is spending less money than it is earning. This can help show that our economy is strong and reliable.
- Adjust interest rates. This can make it more expensive for people to borrow money, but it also can help increase the value of the dollar.

So, the strong dollar policy is kind of like having more money to spend at the candy store. When the dollar is strong, we can buy more things from other countries for the same amount of money.