2 ms·

I take the post as the US dollar becoming more scarce but not running out. If OP is right I don’t see the federal reserve acting to bail out China. They might

I take the post as the US dollar becoming more scarce but not running out. If OP is right I don’t see the federal reserve acting to bail out China. They might happen to do QE for another reason but not to help out other countries with their problems.

pishpash 5y ago
As the bank of the world's reserve currency the Fed is always implicitly running a world bank. The transmission mechanism is for foreign currency to depreciate against USD which causes US domestic financial conditions to tighten, and the Fed would then have to loosen.