- Cristina J. Orgaz
- BBC News Mundo
Source of the image, Getty Images
One of the most negative effects that the dollarization has caused is the destruction of the local industry and, for example, the generation of employees, says economist Pablo Dávalos.
“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 planting of economist Robert Triffin in the decade of the 60s is really a long thesis, which it entices question the sale of the dollar to the world reserve division.
“In 1959, Triffin presented to Congress its” double dilemma: “If the United States eliminates its” commercial deficit “privately in the global economy “liquid international necessities for the expansion of world trade“, explains Evi Pappa, Associate Professor of Economics at the Carlos III University of Madrid.
It is clear that the world needs dollars for the global economy to function adequately.
Pero, following the paradise, as the international provider of the main reserve reserve and to increase the issue of dollars, the country is condensed to incur chronic deficits.
The most emissions, the most deficits.
Source of the image, Getty Images
Triffin was recorded by Haber anticipating the rupture of the oro-dollar angle adopted in the Bretton Woods chords.
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 a no-brainer issue that has been delayed for some time rebate the uso of bitcoin, entender the monetary policies or the operation of the super-commercial 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.
Es decir, the dollar is used to pay for good and servicesof the United States and other dollar-denominated economies such as Ecuador, Panama or El Salvador and in the Middle East other Latin American countries.
But also serve as valor refugio o para almacenar riqueza.
It has the double currency of money and financial activity.
Source of the image, Getty Images
The dollar has a double paycheck as a currency and as a financial asset.
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.
Source of the image, Getty Images
Most of the exchanges of world trade take place in dollars.
“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.
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 devaluateaction del dollars. “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.
Source of the image, Getty Images
The only solution is that there are other months that will increase the importance of the international system.
“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.
“Frankly, the only solution is what it is that other currencies andyesn increasing its importance off 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.
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