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The USD actually has to always inflate to stay relevant since it drives much of the world's markets. Over time there has to generally be an increased supply of
by samus 4y ago
The USD actually has to always inflate to stay relevant since it drives much of the world's markets. Over time there has to generally be an increased supply of the green bills because other countries become more affluent. It is one of the reasons why the Nixon Shock happened - the gold standard became too restrictive, and since the USD was tied to it, it became unsustainable. Countries like France were considering exchanging their USD with gold, which would have seriously depleted the US gold deposits.