logoalt Hacker News

robinsoncrusueyesterday at 8:38 PM1 replyview on HN

> As applied to the United States, the current account version of Triffin runs as follows. The global accumulation of dollar reserves requires the United States to run a current account deficit. Since desired reserves rise with world nominal GDP, which is growing faster than US nominal GDP, the growth of dollar reserves will raise US external indebtedness unsustainably. Either the United States will not run the current account deficits, leading to an insufficiency of global reserves. Or US indebtedness will rise without limit, undermining the value of the dollar and the reserves denominated in it.


Replies

epistasisyesterday at 8:41 PM

Can you be a bit more explicit about what the benefit is, and who benefits? It's not clear what your thinking is.