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0 sats \ 0 replies \ @7e6e393a56 29 Dec 2024 \ on: The dollar as a reserve currency and the Cantillon effect econ
Having a dominant global currency provides ample demand which benefits US businesses and consumers through the liquidity and stability of their currency. Additionally, it allows them to theoretically borrow at lower rates than are available in the rest of the world.
Being the issuer of the world's reserve currency also generates another source of revenue for the US government. This income is the purchasing power created through the printing of new US dollar bills.