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Trump's coronavirus stimulus package tests credibility of dollar

US government debt set to top World War II levels

The Fed is aggressively purchasing U.S. government bonds.

NEW YORK/TOKYO -- The U.S. government is boosting fiscal spending to cope with the novel coronavirus pandemic, leading to deteriorating fiscal conditions, with the debt to gross domestic product ratio expected to exceed that during World War II.

Nikkei calculated the theoretical value of currencies using statistics and interest rates, and found that if government debt expands as rapidly as projected, the theoretical value of the U.S. dollar will depreciate.

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