As long as other countries do business in USD and keep buying US debt, the party keeps going.
With fiat, you can spend as much as the combined purchasing power of all your citizens through money printing.
When you’re the reserve currency, that pool is extended to the purchasing power of many many countries.
That’s probably why, from a strategic POV, the US must remain the largest military force and continue to police the world.
With dollar hegemony, the US might even introduce new ways (like MMT) of sipping purchasing power of participants.
As long as other countries do business in USD and keep buying US debt, the party keeps going.
With fiat, you can spend as much as the combined purchasing power of all your citizens through money printing.
When you’re the reserve currency, that pool is extended to the purchasing power of many many countries.
That’s probably why, from a strategic POV, the US must remain the largest military force and continue to police the world.
With dollar hegemony, the US might even introduce new ways (like MMT) of sipping purchasing power of participants.