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0 sats \ 4 replies \ @Undisciplined 1 Aug \ on: A Critical Review of Triffin's Dilemma econ
On a true gold standard, there’s a sense in which no nation really issues a global reserve currency. Other nations would just be on a gold standard by proxy.
This is about the incentives surrounding the owner of a money printer. Sure, they could choose not to use it but that is not the expectation.
Given the ability to buy real stuff with free to produce currency, that’s what we expect to see.
Exactly, so, basically it is a prediction that the gold standard will not last and there will be far more dollar compared to gold reserve.
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That’s how I see it. The temptation to cheat is too great to expect it to last.
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Yeah, but the core point is the reasoning has to go via abandonment of gold standard. Trade deficit is just a manifestation but not the core issue here.
But no mention of triffin's dilemma ever mentions gold standard and keeps saying it's a dilemma as if there some great mystery on why this is true.
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Maybe there’s more to it than I’m granting but I pretty much just take it as saying “Those who can export inflation will do so.”
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