“Since when did the Triffin parade go on sale in the periodicals?”
Finally, the digo, any economic concept by lejano that appears to have consequences in the real economy and for it all in our bolsillo.
But he understood the surprise. The plant development of economist Robert Triffin in the decade of the 60s is really a long thesis, which is the question of the sales of the dollar to make the world reserve division.
“In 1959, Triffin presented the Congressional ante on a double dilemma: if the United States eliminates private trade deficits in the global economic liquidity necessary for the expansion of world trade”, explains Evi Pappa, Associate Professor of Economics Universidad Carlos III de Madrid.
It is clear that the world needs dollars for the global economy to function adequately.
However, following the paradigm, as the international provider of the main reserve reserve and to increase the issue of dollars, the country is condemned to incur chronic deficits.
The most emissions, the most deficits.
Only one year later, the economist, considered one of the expert monetary mayors of sail XX, plasma his theory of the “double dilemma” in the book “The gold and the crisis of the dollar”.
Triffin’s is an unprofitable problem that has been delayed for decades in revoking the use of bitcoin, extending monetary policies or the functioning of the super-commercial economy of any economy.
A theory of sailing sails with ecos in current history.
And many economists think that the dilemma has not disappeared.
The parade is, moreover, one of the reasons that explains the value of the dollar in international markets.
The double dollar
“In a few words, Triffin states that there are conflicts and difficulties when a national currency is convened in a well-publicized international”, Pappsteen Pappa.
In other words, the dollar is used to pay for good services and services in the United States and in other dollar economies such as Ecuador, Panama or El Salvador and in the Middle East other Latin American countries.
But it also serves as a refuge value or to impoverish wealth.
It has the double currency of money and financial activity.
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Benefits: the “exorbitant privilege”
This unique role of the division divides the permission to make some unique sales.
“Between them encounters the acquaintance with” exorbitant privilege, “Díaz-Gimenez dice.” The planet has dollars, and they use it to buy and sell. Para Estados Unidos es una ventaja “porque puede incurrir en deficits sin debilitar la divisa, añad el profes del IESE.
“Es decir, al ser el emisor de la moneda reserva, Estados Unidos tiene the “exorbitant privilege” of endeavoring to have unspecified limits sin someterse a la macropononom discipline que le correspondondería “, schreiwen el economista Miguel Otero Iglesias en un artículo del Real Instituto Elcano toe.
If embarrassing, advised, if exploited in sovereignty this privilege, can lie a moment in which the acreedores pierdan la confianza in the reserve.
Hecho, the commercial deficit of EE.UU. increased by 17.6% in 2020.
“Propose reserves and exchanges for all the world is dedicated to a single country and a single month “, predates the 60th anniversary of Henry H. Fowler, Secretary of the United States Treasury from 1965 to 1968.
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Implications for the dollar
“The dilemma of Triffin is high in its functioning because it has a tendency towards the deficit of the United States that can provoke the dollar devaluation. “This is the contemporary form of this famous dilemma”, a BBC Mundo el Colombista economist Jose Antonio Ocampo explained.
The Professor of the School of International and Public Affairs of the University of Columbia reckons that one of the characteristics of the financial system in the last 20 or 30 years has been since each of the extras included bonuses or Denominated financial titles denominated in dollars, because it is the privileged international currency.
“In addition, when there is a devaluation of the dollar, there is a lot of money from foreigners who are under appeal, because digamos, their dollars valen less in their local months. depreciation of the latino american currency“, afirma.
Muchos lands reserve reserves in dollars in its central banks.
As a currency exchange, devaluations or depreciation of Latin American currencies.
For Ocampo, this is the main cost that there is a devaluation of the dollar.
“Obviamente también, todos los que trading in dollars pierden competitividad in front of what is produced in the United States and that the country can sell its most affordable products in the foreign country “.
There is a tendency to export more on the part of the United States and to import less.
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Appears a positive effect for the United States, a negative effect for the rest of the world.
“Here, for the United States, it is more attractive to export Latin America and for Latin American countries it is more difficult to export to the United States”, says Ocampo.
The Columbia professor creates that strictly speaking, the dilemma has no solution.
“Francamente, the only solution that is what other currencies will increase their importance in the international system “.
The second world currency in the world is the euro and the rest, as the Japanese yen and the British book are very distant.
“También is the Chinese renminbi, but his weight is very small within the international system”, dobbeltsteen.
Everything we need to think about now, the hegemonic paper of the dollar is indistinguishable.