A Strong U.S. Dollar Weighs on the World
nytimes.com
A Strong U.S. Dollar Weighs on the World
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Re: A Strong U.S. Dollar Weighs on the World
#2Re: A Strong U.S. Dollar Weighs on the World
#3Seems strange that the US printed lots of money, which caused inflation, which caused high interest rates, and now causes a strong dollar.
You wouldn't think that printing money leads to a stronger currency, but perhaps this is a delayed effect after you stop printing.
Re: A Strong U.S. Dollar Weighs on the World
#4Seems strange that the US printed lots of money, which caused inflation, which caused high interest rates, and now causes a strong dollar. You wouldn't think that printing money leads to a stronger currency, but perhaps this is a delayed effect after you stop printing.
perhaps everyone printed money and US less then the rest
Re: A Strong U.S. Dollar Weighs on the World
#5The rest of the world also printed a lot of money. In a globalized economy inflation does remain isolated in the country that it originates in. Especially when the country has a lot of exports.
Normally the exchange rate divergence could be countered by increasing interest rates in the country with the weakening currency. But today it appears most countries are not willing to do this to the extent necessary.
Re: A Strong U.S. Dollar Weighs on the World
#6Seems strange that the US printed lots of money, which caused inflation, which caused high interest rates, and now causes a strong dollar. You wouldn't think that printing money leads to a stronger currency, but perhaps this is a delayed effect after you stop printing.
Maybe its all relative (i.e., versus what other central banks have done in response to the same shocks).
In any case the post-pandemic interest rate hikes are recent. There seems to be a much longer term (decades long) dollar strengthening pattern that is not really touched upon in the article.
Re: A Strong U.S. Dollar Weighs on the World
#7Seems strange that the US printed lots of money, which caused inflation, which caused high interest rates, and now causes a strong dollar. You wouldn't think that printing money leads to a stronger currency, but perhaps this is a delayed effect after you stop printing.
perhaps everyone printed money and US less then the rest
It's more like everyone is printing money panic, run to US dollar for safety
Re: A Strong U.S. Dollar Weighs on the World
#8I think the main reasons of the strong USD are:
- it's status as world reserve currency
- it's seen as a safe heaven
- The US is still the most profitable market to launch new product
- the US job market is still performing well compared to the battered economies of Europe where unemployment is starting to go back up
If the ECB decides to lower interest rates before the US Fed does, then even more capital will flow in the US because why would you accept a lower interest rate when you can get a better one in the US in the same asset class.
That in turn will keep making the USD stronger than the euro.
Re: A Strong U.S. Dollar Weighs on the World
#9[deleted]
Re: A Strong U.S. Dollar Weighs on the World
#10Salvum Americana