triffin dilemma is one of those economic paradoxes that still mess with global finance.
here’s the deal: when one country’s currency becomes the world’s reserve (like the us dollar), that country has to run trade deficits to supply enough dollars to the world. but running deficits long-term weakens trust in that currency.
it’s a no-win situation. triffin spotted this back in the 1960s with bretton woods. it’s part of why that system collapsed.
top: all
|
today
search in topic