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[–] [deleted] ago 

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[–] GOMAD_OR_GFYAD ago  (edited ago)

I didn't expect this to turn into a monetary policy discussion, but the USD as a reserve currency doesn't really affect this topic. You're correct that the US$ is often used as the medium of exchange when people are using other currencies to purchase goods and services. What that means is that it will increase the baseline demand for US$ to higher than what it would be otherwise. However, it does not mean that we are immune to the effects that would come from increasing the money supply - it would still increase inflation and weaken the US$ in foreign exchange markets.

The idea of printing money to pay for infrastructure investment is something that was done historically, but that is not the mechanism that the fed uses to change the monetary supply. Money put into the economy through infrastructure investment can not be taken back out of the economy when necessary, which is why the fed changes monetary policy by buying and selling treasuries to banks.

[–] [deleted] ago 

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