The dollar is the most important price in the world. Former Fed Vice Chairman Manuel Johnson asserts the latter in his book on monetary policy, though one gets the feeling he wasn’t the first to say something so blindingly true.
The dollar is the world’s most important price precisely because it factors into just about every global transaction in the world. Put another way, when Argentinians transact with Egyptians, the official currency of each country (the peso and the pound respectively) is almost certainly not the currency in which any exchange is denominated in.
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