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Frank W · 06-21-2002, 02:41 PM

Good thread. On a related note, the US' inflation rate is lower because a lot of foreign countries trust the greenback more than their own currency [e.g. parts of South America and former Soviet Union]. This has positive reverberations for the US economy because instead of being spent here and inflating the money supply here, it is saved and traded abroad. This is called the "signeurial" effect [sic?]. If this effect was not in place, we'd probably be looking at an extra 1.5 to 2% inflation.

06-21-2002, 02:41 PM
Frank W Confirmed User Join Date: Feb 2002 Location: California Posts: 889	Good thread. On a related note, the US' inflation rate is lower because a lot of foreign countries trust the greenback more than their own currency [e.g. parts of South America and former Soviet Union]. This has positive reverberations for the US economy because instead of being spent here and inflating the money supply here, it is saved and traded abroad. This is called the "signeurial" effect [sic?]. If this effect was not in place, we'd probably be looking at an extra 1.5 to 2% inflation. __________________ "If you hate a person, you hate something in him that is part of yourself. What isn't part of ourselves doesn't disturb us." -- Herman Hesse