One thing I don't quite understand in all of these discussions is why there seems to be a fundamental disagreement about the importance of the dollar at the core of them. Maybe we really just don't know that much about how global trade works historically? I guess there just is a fundamental disagreement at the hear of macro econ about this?
It seems to me like being the country that everyone else relies on to facilitate trade is an incredible thing that you'd never want to give up. And yet that's where we are, and what the disagreement is about. In the past few years there's been a lot of talk about BRICS and how it might undermine the reserve status of USD. Other countries appear to envy this position.
I've read some of the Hudson Bay Capital piece[0] on this, the article linked in the post describing why reserve status isn't great, I guess I'm just going to have to read it in full to get a better understanding of the other side.
It seems to me like being the country that everyone else relies on to facilitate trade is an incredible thing that you'd never want to give up. And yet that's where we are, and what the disagreement is about. In the past few years there's been a lot of talk about BRICS and how it might undermine the reserve status of USD. Other countries appear to envy this position.
I've read some of the Hudson Bay Capital piece[0] on this, the article linked in the post describing why reserve status isn't great, I guess I'm just going to have to read it in full to get a better understanding of the other side.
[0]: https://www.hudsonbaycapital.com/documents/FG/hudsonbay/rese...