Source: The Daily Economy
by Peter C Earle
“The belief that the US dollar’s strength stems primarily from the government’s taxation power overlooks several critical factors. While taxation contributes to fiscal stability, the dollar’s demand and resilience are driven by a complex interplay of global confidence, trade practices, and financial markets. (Where dollar ‘strength’ or ‘demand’ are referenced, it is in relative terms: the strength of the US dollar in comparison to other, competing currencies as illustrated by the DXY index.) The primary reason for the dollar’s historically coveted status is its central position as the global reserve currency.” (11/21/24)
https://thedailyeconomy.org/article/is-taxation-the-source-of-the-us-dollars-strength/