A Study Of The U.S. Dollar Supply Under The Dollar Standard

In 1971, the U.S. dollar officially separated from gold. Since then, the international monetary system entered the era of the dollar standard. Under the dollar standard, the dollar supply has unique characteristics, and it also has great impact on the world economy. This paper will study the supply of U.S. dollars deeply, which has certain theoretical and practical significance.Firstly, this paper has a brief review of the evolution of the dollar standard, pointing out the salient features of economic operation under the dollar standard. Subsequently, this paper studies the U.S. dollar supply mechanism, analyzing its operation from the base currency to the circulation currency. Next, this paper estimates the amount of the U.S. dollar supply, and uses a reasonable method to measure the extent of the supply. The results show that:Under the dollar standard, the amount of domestic dollar supply is sometimes excessive or inadequate, but the foreign supply of U.S. dollars is not the key factor to lead to the frequent economic bubbles. Finally, this paper studies the circulation of the dollars which has great impact on the world economy, pointing out that this is the main reason for the emergence of economic bubbles.