Wrong. The difference between both of those giants and New Zealand is enormous.
Let’s take the easy one first. The US is the world’s reserve currency. Despite best efforts by the Euro and prior to that the Japanese Yen, and that both in hindsight look laughable, the USD remains undisputed king of the reserves with very occasional but ephemeral competition from gold bars only. That gives the US policymakers an edge over every other policymaker on earth.
They can print money and there’ll still be a demand, people have to hold it for international transactions purposes. And contemporary co-conspirators of this monopoly are the Chinese and every other mercantilist regime that wishes to control its foreign trade by pegging its currency to the USD. No matter how much money the US prints the Chinese and others will buy it in order to keep their currencies from appreciating against it. What a luxury for the US – it has financiers of infinite resort. While that lasts the US is different.
Now to Europe. As we all know the bloc is in the dock because it forgot to enforce fiscal unity upon its members when it embarked on monetary union in 1999. Instead, after the GFC the governments stepped in to take over the bad loans of their banking sector thus compounding the track record of fiscal imprudence they’d already established over the previous decade.
Junk bond status was accorded some members’ government bonds. Unable to pay the interest, and unwilling to enforce sufficient austerity and higher taxes, those members won their campaign to have the ECB “print” money by buying their crap bonds for euros, and lending directly to enfeebled banks that remain. This is all in the name of “saving the euro” and in the short term it has bought time.But that is all.http://garethsworld.com/blog/economics/why-the-greens-suggestion-to-print-money-is-silly/?utm_source=Website+Subscribers&utm_campaign=d8c543b4ee-print_money10_11_2012&utm_medium=email