3 ms·
It seems that the risk here is more of the perception flavor. That is, the strength of the USD, has a lot more to do with peoples perception of the USD. Simila
by elamje 8y ago
It seems that the risk here is more of the perception flavor. That is, the strength of the USD, has a lot more to do with peoples perception of the USD.
Similar to how the stock market reacts psychologically to perceived changes in companies management or performance, the USD, could easily be under the same influence - only staying stable as long as it has because Americans and foreigners view the Dollar as “safe”.
Considering most people don’t look into underlying phenomena, but tend to rely on surface level notions like governments printing money as needed = bad, I would say the public perception of the usd could go south.
No one, to my knowledge, has ever been taught that a government should print money as it needs.
If no one believes that is a good thing, then people will lose confidence in the USD as a store of value, which is when inflation starts to get out of control.