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4
votes
Accepted
How is the rest of the world making the US an interest free loan by holding US currency?
Think about what a loan is in terms of purchasing power. You give a bank your signature on a loan contract and they give you something that will allow you to buy real stuff (houses, cars, whatever). …
0
votes
Accepted
Why would increased inflation increase the value of the dollar and bond yields?
Unless I'm misreading you, your question seems to imply that higher treasury yields are intuitively associated with lower inflation. they are not. Higher yields are associated with fear of higher in …