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Does the Triffin Dilemma Really Exist on the Dollar as A Reserve Currency?

Ying Zhang


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.


Tiffin Dilemma; Dollar

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DOI: http://dx.doi.org/10.18686/mmf.v6i6.7766