Ok, but still FED is the only institution allowed to issue new dollars. What makes the difference? IMO once you give any bank ability to arbitrarily issue new uncovered money to lend it for interest, you won't ever get rid of the inflation.
Yes, but in the case of the dollar, this effect is smaller because not every dollar is used in the american economy instantly, people save it more than other currencies. Other particularity of the FED is the fact that they seek to control unemployment as well, which isn't a directly monetary variable. What I'm trying to say is "Don't imagine FED when you are picturing NRS".
Woa, this is a surprise, I never heard about it. In my book, Phillips was still valid. Where can I find this?Btw Phillips Curve was proven to be kinda bu.lsh.t.
For this to simulate reality well, it would need an currency exchange system, besides a trust in the currencies system too. Dollar isn't the reserve global currency because USA is the biggest economy, but because it's the more reliable one in the financial world's opinion. Obviously one has relation with another, but isn't a direct equation of cause and consequence.perhaps the superpower's currency is used as a reserve causing benefit for you?