Certainly. My point is that we can't lose sight of the fact that the U.S. consumer benefits from the "inordinate privilege" too. The U.S. has experienced inflation, and it's gotten worse recently, but inflation has been worse for every other fiat currency in the world, because we can export a chunk of our inflation. The whole world helps pay for U.S. QE. That's why it kills me when Yellen  brags that inflation is worse everywhere else than in the U.S. No shit! The U.S. weaponized the dollar.

I'm taking your original point as pointing to a distortion in the economy, which is undesirable if we separate it from the benefit of being able to buy real stuff with fake money.

Undisciplined

Definitely true. I kind of see that as a benefit of reserve currency, not an "undesirable effect".

siggy47

Meta Econ Takeover Day 16

In this case, I think the reserve currency designation is key. Other countries cannot easily export their inflation.