Ishwar Prasad

Second, you need safety, meaning that the value of those assets is going to be preserved more or less.

But there's one other very important thing. A reserve currency issuer needs to have the trust of foreign investors. So you need good institutions. And what are those institutions? One is checks and balances. So you know that a government won't do anything crazy with its policies. Crazy like borrowing more money than it could ever pay back.

But there's one other very important thing. A reserve currency issuer needs to have the trust of foreign investors. So you need good institutions. And what are those institutions? One is checks and balances. So you know that a government won't do anything crazy with its policies. Crazy like borrowing more money than it could ever pay back.

But there's one other very important thing. A reserve currency issuer needs to have the trust of foreign investors. So you need good institutions. And what are those institutions? One is checks and balances. So you know that a government won't do anything crazy with its policies. Crazy like borrowing more money than it could ever pay back.

which means that the government will not change the rules at an instant and say that we're not going to pay back foreign investors. And you need an independent central bank so that you know the value of the currency is going to be preserved and the central bank will not let inflation run amok.

which means that the government will not change the rules at an instant and say that we're not going to pay back foreign investors. And you need an independent central bank so that you know the value of the currency is going to be preserved and the central bank will not let inflation run amok.

which means that the government will not change the rules at an instant and say that we're not going to pay back foreign investors. And you need an independent central bank so that you know the value of the currency is going to be preserved and the central bank will not let inflation run amok.

So those are all of the key attributes of a reserve currency. If one were looking for an ideal reserve currency, this is what you would want to have.

So those are all of the key attributes of a reserve currency. If one were looking for an ideal reserve currency, this is what you would want to have.

So those are all of the key attributes of a reserve currency. If one were looking for an ideal reserve currency, this is what you would want to have.

That is about right.

That is about right.

That is about right.

Yeah, it's a potential rival. Yeah, potential, but Brexit, when the UK left the European Union. The British economy has really struggled since then.

Yeah, it's a potential rival. Yeah, potential, but Brexit, when the UK left the European Union. The British economy has really struggled since then.

Yeah, it's a potential rival. Yeah, potential, but Brexit, when the UK left the European Union. The British economy has really struggled since then.

I mean, this is a very rich economy, but they're just not growing very much there.

I mean, this is a very rich economy, but they're just not growing very much there.

I mean, this is a very rich economy, but they're just not growing very much there.

And they really need exports to grow. Which means they need a weaker yen. So for them, they don't really want it.