Archive for Dollar

QE and the USD

Today at his blog Krugman writes: China has experienced a very large real appreciation since 2011, partly due to higher inflation than in its trading partners, partly because its dollar peg means that it has tagged along with the rising dollar (which was supposed to plunge due to QE, but never mind)… In other words, […]

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More Moves Against the Dollar

The problem with the USD being the world’s reserve currency is that it’s a situation where things could unravel very suddenly. So long as most investors think that the dollar will be OK next week, then it will be a self-fulfilling prophecy. But if people start to worry, then there could be a sudden crash […]

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Is the International Status of the Dollar a Big Deal?

David R. Henderson has a thoughtful post that (among other things) endorses Paul Krugman’s recent thoughts on the significance (or lack thereof) of the dollar’s role as the world’s reserve currency. As David puts it, the role of seigniorage is relatively unimportant in its impact on Americans. In the comments I pushed back on David’s […]

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