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As the reserve currency, the USD has some weight on it due to that position, can't just manipulate it like others can as easily except printing more [1]. Being
by drawkbox 7y ago
As the reserve currency, the USD has some weight on it due to that position, can't just manipulate it like others can as easily except printing more [1].
Being the reserve currency, it was more fair when everyone was pegged to the dollar so at least manipulation was in check a bit. Both the unpegging and the free trade agreements put more pressure on the US for being a reserve currency.
Ultimately, the USD is too high and it is the root of lots of the problems with jobs, exports/imports and the trade imbalance, national debt as the reserve currency is a safer investment due to it not being as easy to manipulate due to the sheer size of the supply. Now that we are a debtor nation rather than a creditor nation, the problems are more evident [1].
[1] https://www.forbes.com/sites/bobmcteer/2013/09/05/reserve-currency-status-a-mixed-blessing/#244e4bc14e59 https://www.forbes.com/sites/bobmcteer/2013/09/05/reserve-cu...
- blunte 7y agoWhat about quantitative easing via banking regulations?