I had a deam last night (weird thing to dream about, I know) about how when the US prints a shed load of money, other countries have to print more of their own currency too, especially if they do a lot of trade with the US.
Otherwise, the dollar devalues against their currency (thus making their currency stronger) and making their exports more expensive and less competetive.
Does anyone know if that's actually a thing? Or have I finally taken a dive off the deep end <rhetorical>.
It is a thing. But it's only part of the story. A country that exports to the US would be a less competitive exporter, but countries that import from the US would receive more for the same price. And each country has other considerations as well, like whether they trade with other countries, and how devaluation their own currency plays locally. So it's not a direct link.
Got it, thanks.
was your dream anything like this?.
https://youtu.be/mII9NZ8MMVM?si=2cIkuZER0O8oY_Hx
wow, that's a blast from the past - well worth a rewatch too, thanks
at 1:58, "put em on- you're gonna need em"