23 ms·
Being the biggest reserve currency has a little-discussed perk where the reserves lower the average velocity of money, which blunts the inflationary pressure of
by overfeed 1y ago
Being the biggest reserve currency has a little-discussed perk where the reserves lower the average velocity of money, which blunts the inflationary pressure of money-printing. Eroding trust in the US will deplete these deep pools of USD and will result in a more direct linkage with domestic inflation in the future.