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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy does the US Government have dollar-denominated debt?
Can the USG ever actually need a US Dollar, strictly speaking?
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Why does the US Government have dollar-denominated debt? (Original Post)
Recursion
Feb 2016
OP
TreasonousBastard
(43,049 posts)1. The dollar is pretty much a worldwide fiat currency...
and we borrow in dollars so we can try to control its value.
Imagine if we borrowed in Yen, or Euros...
Recursion
(56,582 posts)2. Why imagine that?
Last edited Sun Feb 21, 2016, 12:35 PM - Edit history (1)
What good would borrowing Yen or Euros do?
Travis_0004
(5,417 posts)3. it would increase the risk of debt
Since debt would also be subject to exchange rate risk.
Recursion
(56,582 posts)4. Right... and we have no need to do that
?