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It is good for the developing world, as producers/exporters subsidize countries with reserve currencies. That's why inflation in countries with reserve currenci
by perfecthjrjth 3y ago
It is good for the developing world, as producers/exporters subsidize countries with reserve currencies. That's why inflation in countries with reserve currencies is always a way lower than other counties. MMT claims that one can swap "printed money" with real products (such as cars, commodities, food, clothes). This kind of swapping is possible for the US, EU, UK (Mostly the Western world and Japan). Who wants to swap million barrels of oil to Zimbabwian dollars.
- awestroke 3y agoHow is USD better than Zimbabwean dollars after the US federal reserve has quadrupled the amount of dollars in less than a year and then claimed only single digit inflation? EDIT: I love how nobody replying is addressing my actual point
- xboxnolifes 3y agoThe Zimbabwean dollar had MONTHLY inflation rates reaching 79,000,000,000%.
- Xylakant 3y agoFun story: There was an advertising campaign for a Zimbabwean newspaper with posters and handouts printed entirely on Zimbabwean dollar bank notes https://en.m.wikipedia.org/wiki/The_Trillion_Dollar_Campaign https://en.m.wikipedia.org/wiki/The_Trillion_Dollar_Campaign
- baq 3y agoNobody wants to get paid in Zimbabwean dollar.
- deleted 3y ago[deleted]
- wiseowise 3y ago> How is USD better than Zimbabwean dollars It’s backed by the most powerful nation in the world.
- petesergeant 3y ago> after the US federal reserve has quadrupled the amount of dollars in less than a year and then claimed only single digit inflation Inflation is a measure of how much things cost, not of how much money exists.
- awestroke 3y agoIf quadrupling a country's money does not cause runaway inflation, then there is something deeply wrong going on
- pmontra 3y agoIt could be worse, it could be better. All that it matters with currencies is trust. Trust that they can be exchanged and trust that they keep their value. If I go shopping tomorrow and they tell me, you can keep your euros and your dollars, we want only bricks because currencies are crashing and bricks will be useful forever, I better have to get out and find some brick. The dollar is fine until people will trust it.
- zpeti 3y agoResponding to your edit: Perhaps in a theoretical sense they aren’t different, they are fiat money which is basically a ledger of value (which governments manipulate). But behind the dollar is the largest economy in the world and the largest army by a long shot, and a lot of motivation to keep the dollar as the “biggest” currency in the world.
- baq 3y agoReplying to edit: technically there’s no difference and this technicality doesn’t matter one bit. You’re being told the answer and fail to see it.