The US Dollar Is Used Because It’s Useful – Bitcoin Not So Much

There are those who insist that Bitcoin will become the predominant international currency at some point. That would require that it is actually useful to use as an international currency. For when we look at why people use the US dollar we find that’s why they use it – it’s useful:

If money could buy happiness: The determinants of utility of international currencies
Eiji Ogawa, Makoto Muto 26 July 2019

Given the US dollar’s historical prominence in international currency systems, it can be argued that a large part of its present-day importance is due to inertia.…

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Strive Masiyiwa Is Right, Zimbabwe Should Price In SA Rand – Anything But Zim$

The precise details of this call for Zimbabwean businesses to price in South African Rand, put forward by Strive Masiyiwa, might not be entirely correct. But the overall idea, that no one should be trying to price nor transact in variations of the Zimbabwe dollar are entirely correct.

In conventional economics not having your own currency is something of a problem. It means that there can be no monetary policy that is locally determined. Thus there’s no monetary policy attuned to the needs of the local economy.…

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Ncube Is Right About The Zim$ Here – Liberalise The Exchange Rate, Not A New Curreny

That Zimbabwe is still having problems with it currency and money supply is obvious enough, the debate is over what to do about it – here Nucube at the central bank is correct. Liberalise, preferably completely, the exchange rate rather than introduce yet another new currency. For the problem isn’t in fact that there’s too much or too little money around, it’s that the price of it is wrong. Get the price right and all the other problems go away.…

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Zimbabwe’s Third Time Lucky – The Return Of The Zim$

That Zimbabwe has suffered the most appalling economic mismanagement in recent decades is clearly true. That it’s a reasonable example of the application of Modern Monetary Theory to the world is also true. MMT says that governments aren’t fiscally constrained, they can just print money to pay for things and as long as the economy has unused resources she’ll be fine. The resources start getting used, all get richer. This should stop once inflation arrives because that’s when it should stop.…

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