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> One path to doing that is to sell dollar-denominated assets. US Stocks and bonds in other words. A big part of the world economy is literally or effectively
by Denvercoder9 5y ago
> One path to doing that is to sell dollar-denominated assets. US Stocks and bonds in other words.
A big part of the world economy is literally or effectively dollar-denominated, so a sale of dollar-denominated assets does not imply a sale of US stocks and bonds. You can sell just about anything for dollars.
- onlyrealcuzzo 5y agoIncluding almost all currencies...
- mywittyname 5y agoThis still would drive up the value of USD, it just allows for the depreciation associated with the sale currency to be spread out to a degree. But the issue with this is that there are only a few currencies backed by economies large enough, relative to the US economy, to be able to trade for sufficient quantities of USD without really impacting the exchange rate. If the impact is large enough, the only good solution is for the fed to agree to a currency swap.