The U.S. dollar index has steadily declined over the past few months. This has generated much market commentary, with many noting the soaring gold prices (and bitcoin) as suggesting that the death of the dollar is imminent. But depreciating the dollar in a global recession is just standard, and predictable, macro policy. In this post I’ll walk through the rationale for depreciating the dollar, how that is being accomplished, and whether that means the dollar will lose its reserve currency status.

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