Global Feed Post Login
Replying to Avatar mike

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.

Avatar
nami 11mo ago

Not necesserily i would say. That is also why we were talking about petrodollar. What it made a global reserve currency was the fact that countries needed to use it for payments.

Reply to this note

Please Login to reply.

Discussion

No replies yet.