Money “printing “ a...
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Money “printing “ and its impact on U.S. inflation

Posts: 1
Topic starter
Joined: 4 weeks ago

Does the fact that the dollar is a strong currency and can be used to buy things all over the world give the U.S. an unfair advantage over developing countries? It doesn’t need to increase its production of things to accompany the increasing amount of money to keep the inflation under control.

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Posts: 39
Joined: 1 year ago

Yes - it is absolutely a huge advantage. Thinking back to 2020 - the U.S. and other wealthy countries offered enormous amounts of fiscal stimulus but the developing countries did very little. The developing countries could not do the same level of stimulus without unleashing significant currency devaluation, which would increase inflation in their country a lot. But the market gives wealthier countries more space to use inflationary policies.