Editing Strong dollar policy (section)

=== Status quo ===
{{See|International use of the U.S. dollar}}

Global use of the dollar results from the post-WW2 economic order where the United States came out of the war relatively unscathed unlike other developed nations at the time.<ref name=":5">{{Cite web |title=The Dollar: The World’s Reserve Currency |url=https://www.cfr.org/backgrounder/dollar-worlds-reserve-currency |access-date=2024-04-02 |website=Council on Foreign Relations |language=en}}</ref> The dollar system as it is structured today originates from the [[Nixon shock|Nixon Shock]], when the former [[Bretton Woods system|Bretton Woods]] system ended. Global trust in the dollar results from the United States being the world's largest economy and having the most stable and liquid financial markets globally.<ref>{{Cite journal |last=Bertaut |first=Carol |last2=Beschwitz |first2=Bastian von |last3=Curcuru |first3=Stephanie |date=2021-10-06 |title=The International Role of the U.S. Dollar |url=https://www.federalreserve.gov/econres/notes/feds-notes/the-international-role-of-the-u-s-dollar-20211006.html |language=en}}</ref> Global demand of dollars results from most if not all trade globally being priced in dollars, meaning that countries must acquire dollars in order to import goods and countries collect dollars when they export goods. Additionally, the dollar plays a large role in global financial markets where there are many borrowers of dollars, contributing to global dollar demand.<ref>{{Cite journal |last=Eren |first=Egemen |last2=Malamud |first2=Semyon |date=2022-05-01 |title=Dominant currency debt |url=https://www.sciencedirect.com/science/article/pii/S0304405X21002932 |journal=Journal of Financial Economics |volume=144 |issue=2 |pages=571–589 |doi=10.1016/j.jfineco.2021.06.023 |issn=0304-405X}}</ref> As the global 'producer' of dollars, the United States plays an important global role by providing dollars (dollar liquidity) to the rest of the world in the form of financial assets that foreigners purchase, bringing money into US financial markets. This is beneficial for the US economy as it allows the US to borrow at more favorable rates than the rest of the world.<ref name=":5" /> The aforementioned factors help strengthen the dollar, all else equal.