The American Empire in a Changing World


Sunday, June 24, 2012

''The reserve-currency argument''

From Investors Chonicle

''Reserve currencies are wonderful things. Because they are a claim on the world's most successful major economy, they fulfil better than any other currency the crucial functions of money - to be a means of exchange and a store of value. In other words, the reserve currency is the most liquid of the lot - you can always buy or sell it in quantity. Probably more important, because it is backed by a successful economy and a stable, functioning government, it is trusted to hold its value against risk in all its multifarious forms.''

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