A asked in Social ScienceEconomics · 7 years ago

What happens when the US dollar ceases to be the reserve currency of the world?

What happens when the US dollar ceases to be the reserve currency of the world? hyperinflation? anything else?

3 Answers

Relevance
  • Anonymous
    7 years ago
    Best answer

    It would have the status of Pound Sterling. The mystery power of dollar would be gone.The bond rate will go up.That means it is expensive to stimulate the economy. And it is hard to go on austerity program.

  • Sienna
    Lv 7
    7 years ago

    The inflating effects of the Fed will be much greater because the effects will be confined to the USA, instead of being able to be spread through the world as now. In other words, the effect of the Fed inflating the USD at present, is to vacuum up the wealth created by all those other people in the world, and channel it into the hands of the Fed and its corrupt circle of political favourites. Quite disgusting really.

    Of course if central banking were criminalized as it should be, there would be no favoured reserve currency.

  • Anonymous
    7 years ago

    Trade will be more difficult for the U.S. since some countries will reject the U.S. dollar when exchanging it. As most of us already know, America imports way more products than we export and therefore if our currency is no longer the reserve currency, prices for the things we import will skyrocket or either that we won't be able to get any international products since the dollar is no longer accepted.

Still have questions? Get answers by asking now.