New answers tagged currency
5
votes
Accepted
Would China currency-swap deal with Argentina be made useless if Argentina would switch to the U.S. dollar?
Since Argentina can’t print US dollars (without committing an act of war against the US), it can easily run out of them if its dollar outflows exceed its inflows, which is quite likely. That’s why ...
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8
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How do central banks outside the U.S. issue USD?
Some apparent misconceptions in the Q:
First, issuing money is complicated thing. Straight "printing" or increasing the monetary M1 mass (be it electronic) is not how central banks normally ...
- 145k
2
votes
How do central banks outside the U.S. issue USD?
Question #1
How do central banks outside the U.S. issue USD?
They can acquire them through trade, buy them, or sometimes the US will provide emergency relief. Russia and China both keep sizable ...
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32
votes
Accepted
How do central banks outside the U.S. issue USD?
TL;DR: Not being able to issue USD is the point of it.
The full discussion can be found in Wikipedia article Currency substitution.
The main disadvantage of the currency substitution (i.e., using ...
- 12k
12
votes
How do central banks outside the U.S. issue USD?
Such a country has lost a major lever for controlling their economy. They find the benefits of using a widely trusted currency more important than the loss of control. Remaining tools to manage the ...
- 106k
16
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How do central banks outside the U.S. issue USD?
Lots of mixed-up questions here.
How do central banks outside the U.S. issue USD?
Of course other banks (central or not) cannot print USD (at least legally).
If they issue USD, they must get them by ...
- 31.2k
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