they hate us for our currency................From Reuters
By John Kemp
THE TRIFFIN DILEMMA
''This paradox linked to the provision of the world’s reserve currency
was first noted by Yale economist Robert Triffin. In a famous warning to
Congress in 1960, Triffin explained that as the marginal supplier of
the world’s reserve currency the United States had no choice but to run
persistent current account deficits.
As the global economy expanded, demand for reserve assets increased.
These could only be supplied to foreigners by America running a current
account deficit and issuing dollar-denominated obligations to fund it.
If the United States stopped running balance of payments deficits and
supplying reserves, the resulting shortage of liquidity would pull the
global economy into a contractionary spiral.''
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