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>.
not a moneypede, BUT why would they want the dollar valued more against their currency? if the exchange rate buys them more dollars, then so be it. I doubt they print more of their own to match the amount printed by the usa.
It makes their exports more expensive if their currency is strong against the country they are trying to sell to, so they lose out on price.