Re:Sweden starts largest military exercise in over 25 years
by dragonwriter on Monday April 17, 2023 @07:58PM
(#35608249)
> I thought the US can already print as much money as they want without fear of soaring inflation due to $ being the global reserve currency.
No, that’s never been the case. If it was, loose monetary policy to prevent incipient deflation (which is exactly causing inflation compared to the status quo ante) wouldn’t work (and, conversely, leaving the loose money policy engaged too long would lead to inflation, like it did after the brief COVID recession.)
The US having the ability to borrow in its own currency (which is closely related to the dollar being a global reserve currency, but slightly different) means that it always has the theoretical capacity to monetize the debt.
No, that’s never been the case. If it was, loose monetary policy to prevent incipient deflation (which is exactly causing inflation compared to the status quo ante) wouldn’t work (and, conversely, leaving the loose money policy engaged too long would lead to inflation, like it did after the brief COVID recession.)
The US having the ability to borrow in its own currency (which is closely related to the dollar being a global reserve currency, but slightly different) means that it always has the theoretical capacity to monetize the debt.