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this post was submitted on 09 Apr 2025
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What if country A doesn't produce that much at all and instead just prints dollars, then uses it's military to force everyone to trade oil and everything else in dollars enjoying a steady flow of goods and services in exchange for cheap paper? And what if country A then suddenly reverses course (because other countries start to move away from the dollar anyway) and tries to cash in on this flow, while it's still going, with high tariffs?
So much of undergrad macroecon classes is built on the idea that everyone plays nice and fair with each other.
You know, a fantasy land.