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Those criteria you list make for independent monetary policy making. Not at all the same thing as world reserve currency. You don’t see oil markets trading in
by Havoc 1y ago
Those criteria you list make for independent monetary policy making. Not at all the same thing as world reserve currency.
You don’t see oil markets trading in New Zealand dollars. Or half the world holding large amounts of Aussie dollar in their forex reserves. Or a bunch of Canadian gov bonds. Or benchmark their rates against the US in reporting.
If the US prints more half the world carries the pain but US gets all the benefit. Lose reserve currency status and that so called exorbitant privilege goes up in smoke. Along with the financial system built on it