The value of the US dollar is crucial for the global economy. Recent increases in China's money supply have had a significant impact on global liquidity. By analyzing various factors like inflation, output, interest rates, and liquidity in the US, China, and other countries, researchers were able to predict the future value of the US dollar. Their model outperformed random predictions, especially when considering sticky prices. Changes in China's liquidity growth rate post-financial crisis have a notable effect on the US dollar exchange rate, with higher growth rates leading to a stronger dollar in the short term and a weaker dollar in the long term.