VOA Chinese, Dec 2, 2015.
http://www.voachinese.com/conten ... 151202/3084252.html
My comment: The VOA report is oversimplified. So you must read the the original.
Ben S Bernankem China's Gold Star. Brookings Institution, Dec 1, 2015 (blog).
http://www.brookings.edu/blogs/b ... 01-chinas-gold-star
"Importantly, the dollar’s global status is a market outcome, not the result of a decision by any international body or of an international agreement. Private investors and governments freely choose to hold dollars * * * because the Federal Reserve has kept inflation low and stable for the past thirty years"
Inflation reduces purchasing power of a currency holder, whether located domestically or abroad.
|