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Reserve currency status has also helped us out tremendously despite being $28 trillion in debt (and growing rapidly).
by 300bps 6y ago
Reserve currency status has also helped us out tremendously despite being $28 trillion in debt (and growing rapidly).
- JumpCrisscross 6y agoMaybe, maybe not. Reserve currency status keeps borrowing rates low. But it also forces a current account deficit. How those balance with respect to domestic money supply is complicated, and not necessarily one sided. Plenty of economists recommend abandoning reserve currency status to balance our monetary policy.
- chii 6y ago> also forces a current account deficit. which i haven't understood to have any real negative side effects so far. Why is it a bad thing?