TRIFFIN'S PARADOX

abhishreshthaa

New member
The Bretton Woods System had some contradictions which were pointed out by Prof. R Tryffin which were :-


The system depended on the dollar performing and its role as a key currency. Countries other than the U.S had to accumulate dollar balances as the dollar was the means of International payment.


This meant that the US had to run BOP deficits so that other countries could build up a stock of claims on the US.


When the US deficits started mounting, other countries started losing faith in the ability of the US to convert their dollar asset into gold.
 

rosemarry2

MP Guru
The Bretton Woods System had some contradictions which were pointed out by Prof. R Tryffin which were :-


The system depended on the dollar performing and its role as a key currency. Countries other than the U.S had to accumulate dollar balances as the dollar was the means of International payment.


This meant that the US had to run BOP deficits so that other countries could build up a stock of claims on the US.


When the US deficits started mounting, other countries started losing faith in the ability of the US to convert their dollar asset into gold.

Hey friend,

Please check attachment for Research Study on Triffin's Dilemma Again and the Efficient Level of U.S. Government Debt, so please download and check it.
 

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  • Research Study on Triffin's Dilemma Again and the Efficient Level of U.S. Government Debt.pdf
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