More technically, holding AU dollars instead of other financial instruments effectively raises the demand for the good used to produce AU dollars (I would guess that is AU government bonds) relative to other financial instruments, but doesn’t raise the total demand for investment directly.
Yes, you are correct.
More technically, holding AU dollars instead of other financial instruments effectively raises the demand for the good used to produce AU dollars (I would guess that is AU government bonds) relative to other financial instruments, but doesn’t raise the total demand for investment directly.