Why You Need $USD to Mint Aussie Dollars

All countries with central banks exercise monetary sovereignty, right?  Nobel economist Paul Krugman certainly thinks so.  â??Wow,â? he wrote, after reading Benn Steil and Manuel Hinds say otherwise in the Financial Times on May 24, â??Have these guys ever talked to anyone in Sweden, which doesnâ??t need euros to create more kronor?â? Fortunately, we have the data, which is better than talk.