logoalt Hacker News

krupanyesterday at 5:31 PM0 repliesview on HN

This is the most important comment here. The US rebuilt nations' economies after World War II by printing dollars and buying goods from those countries. In return, the dollar became the world reserve currency and did not suffer massive inflation despite printing so much of it. It's a supply and demand thing, just like any good or service. There was a ton of demand for the dollar, so printing more (increasing supply) did not crash the "price" of the dollar (inflation is the price/value of the dollar decreasing). We printed a ton of dollars during covid but it didn't result in hyperinflation like what happens with, say, Iran or South American currencies because the demand for dollars was still so very high.