Ep. 276 Even Milton Friedman Slipped in His Defense of Trade Deficits
Bob Murphy Show
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The Importance of Printing Up $100 Bills
Bob Greene: It's wrong to think that if you have the world reserve currency, it is costless to print up $100 bills and import, let's say, cars with them. He says we could also invest in foreign assets like shares of Japanese companies or buy bonds issued by the Japanese government. Greene: The trade deficit doesn't follow because just because now we have the ability to create whatever $100 billion a year new money that we can safely quote export without it coming back and biting us.
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