modern-day Triffin dilemma arguments always fall prey to the fact that we have _flexible, unlimited exchange rates_: put differently, there _is_ no (forcing) dilemma involved.
I wonder what Bhatia says about what's "forcing" the US to issue such debt
> Traditional reserve accumulation forces the United States to issue sovereign debt to every foreign central bank that wants to hold dollars. The Eurodollar system compounds the problem by multiplying those dollars through offshore credit creation that no American regulator can constrain.
because there is no _forcing_, the way that e.g., a gold standard commitment has to exchange gold for dollars at fixed rate, or Bretton Woods loosely forces the U.S. to back outstanding (digital, paper) dollars with ounces of gold.
What "forces" the US government to run insane deficits? ---
hardly European banks. Put differently, European banks and savings gluts and Middle Eastern sovereigns _allow the U.S. to run deficits super cheap_ -- the topic of Rogoff's dollar book (#1428602)
modern-day Triffin dilemma arguments always fall prey to the fact that we have _flexible, unlimited exchange rates_: put differently, there _is_ no (forcing) dilemma involved.
I wonder what Bhatia says about what's "forcing" the US to issue such debt
> Traditional reserve accumulation forces the United States to issue sovereign debt to every foreign central bank that wants to hold dollars. The Eurodollar system compounds the problem by multiplying those dollars through offshore credit creation that no American regulator can constrain.
because there is no _forcing_, the way that e.g., a gold standard commitment has to exchange gold for dollars at fixed rate, or Bretton Woods loosely forces the U.S. to back outstanding (digital, paper) dollars with ounces of gold.
What "forces" the US government to run insane deficits?
---
hardly European banks. Put differently, European banks and savings gluts and Middle Eastern sovereigns _allow the U.S. to run deficits super cheap_ -- the topic of Rogoff's dollar book (#1428602)
hashtag, fight, fight, fight!