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填空题 The US $ has been the most used central reserve asset in the world since then the end of

填空题 World War Ⅱ. Somewhat analogous to a savings account, the dollars were available when

填空题 needed to finance trade or investments or to intervene with in currency markets. Held in the

填空题 form of U. S. Treasury Bonds, the US $ s earn an interest, and the more held in the savings/central reserve account, the better. But the countries don't want their central reserve

填空题 asset US $ to lose value, and there lies a contradiction: at some point, more greater numbers of US $ in supply cause them to lose value-supply and demand. At the same time, the US $ is the

填空题 national currency of the United States of America, that whose government must deal with inflation, recession, interest rates, unemployment, and other national, internal problems. The U.S. government uses fiscal and monetary policies to meet those problems-higher or lower

填空题 taxes, decisions so as to how to spend available revenue, growth or contraction of the money

填空题 supply, and rate of its growth or contraction. It would be accidental if only the national

填空题 interests of the United States in dealing with its internal problems are coincided with the

填空题 interests of the multitude of countries who holding US $ in their central reserve asset accounts.

填空题 The United States may be slowing money supply growth and raising taxes to combat against U.S. inflation while the world needs more liquidity, in the form of US $, to finance growth, trade, or investment. Or the United States may be stimulating its economy through faster money supply growth and lower taxes at a time when so many US $ are already outstanding that their

填空题 value is dropping-not a happy state of affairs for countries holding US $.