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How can the US dollar be called a stable currency?
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categorysociety
typeunderstand
tynamite
tynamite's avatar America's credit rating went down from AAA to AA but still the currency is stable, but not as stable as other currencies. Although inflation has made the prices of stuff go up, wages have increased and products and services have gotten cheaper. Not everyone will notice the cost of living get better though as many people live below the poverty line.

America is the 16th richest country in the world going by GDP, and it will continue to have a stable currency because it has many things to trade with the world which makes it a powerful country.

When countries print too much money, there is hyperinflation, but if a country uses the extra money to spend in ANOTHER country, because that country has received lots of money printed out of thin air and not backed by labour, that will cause stuff in that country to get more expensive, as money not backed by labour is different to money that is. This would make trades from the destination country harder. America doesn't have to do this, because they have lots of things to trade, so they have a high bargaining power over other countries. They even process the world's payments with Visa, Mastercard and American Express, and if all three merged, they would be the richest country on the planet.

When using forex, dollars tends to be better than the Euro and the Swiss Franc,
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Richer people have better health.

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