Does the Triffin Dilemma Really Exist on the Dollar as A Reserve Currency?
Abstract
According the Triffin dilemma, with the excessive deficits and debts of the US, the confidence in the value of the dollar as reserve currency will be eroded. However, the fact doesn’t exist in the dollar. The paper tries to borrow other theories to explain the reasons behind the scenario. The paper firstly points out the faiths of the dollar can be considered as intangible assets of the US. It is influenced by the position of the US in the world. The faith of the dollar will be wobbled only when the positon of the US in the world is being challenged, not by the excessive deficits and debts of the US.
Keywords
Full Text:
PDFReferences
Bolton, P. and Huang, H., 2018, The capital structure of nations, Review of Finance, 2018, 45-82.
Bordo, M. and McCauley, R., 2017, Triffin: dilemma or myth?, BIS Working Papers No. 684, December 2017.
Campanella, E., 2010, The Triffin Dilemma Again, Economics E-Journal, Vol. 3, 2010-25, 1 Sep 2010.
Di, D., 2019, The power of money: relations among politics, the market and the people (in Chinese), China Social Sciences Press, May 2019.
Eichengreen, B., 2011, It may be our currency but it’s your problem, Australian Economic History Review, Vol. 51, No. 3.
Eichengreen, B., 2011, Exorbitant privilege: The rise and the fall of the dollar and the future of the international monetary system, Oxford: Oxford University Press.
McCauley, R., 2015, Does the dollar confer an exorbitant privilege on the US economy?, Journal of International Money and Finance, vol 57, pp 1-14.
Seghezza, E., 2018, Can swap line arrangements help solve the Triffin dilemma? How?, Wiley The World Economy, 2018; 41:2691-2708.
Zhou, X., 2009, Reform of the International Monetary System, website of the People’s Bank of China, 23 Mar 2009.
DOI: http://dx.doi.org/10.18686/mmf.v6i6.7766
Refbacks
- There are currently no refbacks.
