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So, the fed can do it because is special. Japan can do it because is special, the Central European Bank can do it because it's special and the British can do it

So, the fed can do it because is special. Japan can do it because is special, the Central European Bank can do it because it's special and the British can do it because they are special. Not only that, but they can do it all at the same time. At some point, a theory with more exceptions than the opposite should be considered useless. Specially when there is a clear alternative: inflation happens when the spending in the economy surpass the capacity of the economy. Than can happen because the government and the private sector spend too much (bubbles) or because the supply side collapse (hyperinflation in Zimbabwe).

mantap 6y ago
The currencies you list are all considered major reserve currencies, USD, JPY, GBP, EUR. They have value outside of trade. There's over 100 currencies. Most central banks control currencies that are rather pedestrian like Thai Baht or South African Rand.
- neilwilson 6y ago
  And why is that an issue? The most that can happen is that there is no saving of the Baht or the Rand outside the taxation area of those currencies. Assuming they are fully floating. In which case the central bank will be doing nothing other than offsetting the domestic savings in the currency of issue. Because sector balances have to balance. The concept of "reserve" is utterly flawed. People hold balances of all sorts of currencies for very many reasons - largely working capital, but also for insurance and for prestige.