Abstract
The Triffin dilemma is the inherent contradictions existing in the international monetary system. Whether it is gold-standard system or the Bretton Woods system or the current Jamaica system, this dilemma cannot be resolved. This dilemma represents the conflict of economic interests that arises between short-term domestic and long-term international objectives for countries whose currencies serve as global reserve currencies. It was first identified in the 1960s by Yale University Professor Robert Triffin, who pointed out that the country whose currency, as a global reserve currency, foreign nations wish to hold must be willing to supply the world with an extra supply of its currency to fulfill the world demand for foreign exchange reserves, thus leading to a trade deficit.
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Yi-Lin Forrest, J., Ying, Y., Gong, Z. (2018). Where Will Chinese Yuan Go?. In: Currency Wars. Contemporary Systems Thinking. Springer, Cham. https://doi.org/10.1007/978-3-319-67765-1_23
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