Mike on Nostr: The Triffin Paradox For the dollar to be the global reserve currency, all countries ...
The Triffin Paradox
For the dollar to be the global reserve currency, all countries need to sell more to America than they buy in order to hold a US dollar surplus in order to buy goods from other countries.
Thus America must be a net importer of goods from all other countries, thus reducing its production output.
The means US production decreases over time.
For the dollar to be the global reserve currency, all countries need to sell more to America than they buy in order to hold a US dollar surplus in order to buy goods from other countries.
Thus America must be a net importer of goods from all other countries, thus reducing its production output.
The means US production decreases over time.