The term exorbitant privilege (privilège exorbitant in French) refers to the benefits that the United States, as the world's supplier of safe assets, derives from its own currency (the US dollar) being the international reserve currency. These safe assets, primarily government debt, tend to be sold at higher prices than the debt of other governments.
The term exorbitant privilege (privilège exorbitant in French) refers to the benefits that the United States, as the world's supplier of safe assets, derives from its own currency (the US dollar) being the international reserve currency. These safe assets, primarily government debt, tend to be sold at higher prices than the debt of other governments.
Source: Wikipedia "Exorbitant privilege" · CC BY-SA 4.0
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