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http://hdl.handle.net/10419/28948
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| Title: | | The triffin dilemma again  |
| Authors: | | Campanella, Edoardo |
| Issue Date: | | 2009 |
| Series/Report no.: | | Economics Discussion Papers 2009-46 |
| Abstract: | | Tiny changes in the American monetary policy can have dramatic effects on the rest of the world because of its double role of national and international currency. This is what I call the Triffin dilemma, an ever green concept in international finance. In the paper I show how it works through three examples: price of commodities, dollarization, and the international financial position of the US. I argue that to solve this situation, it would be important to create a more democratic monetary system, in which all the countries have a decision weight. In particular, I think that globalization and regionalization should be the two forces leading towards the new monetary system. The main economies should adopt the same currency through a system of fixed exchange rates (global money); developing countries should create regional monetary unions (regional money), preserving the real exchange rate as real shock absorber, but gaining in terms of time consistency and credibility. |
| Subjects: | | Triffin dilemma global currency regional monetary union dollarization |
| JEL: | | F33 |
| Creative Commons License: | |  |
| Document Type: | | Working Paper |
| Appears in Collections: | | Economics: The Open-Access, Open-Assessment E-Journal - Discussion Papers
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