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Triffin Dilemma and Regional Monetary Approach : An Appraisal

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  • Pierre-Hernan Rojas

    (LEDA-SDFi - Stratégie et Dynamiques Financières - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

Abstract

Robert Triffin (1960) was the first to formalize that , under the gold exchange standard , the key currency issuing country faced a dilemma. Either the United States would stop providing more dollar balances for international finance , leading to trade stagnation and deflationary bias in the global economy ; either the United States would continue to provide more of the international reserve currency , leading ultimately to a loss of confidence in the dollar. This paper shows that the formulation of this dilemma is the consequence of Triffin ' s early critics of the Bretton Woods system in the 1940s leading him to advocate a reform of the international monetary system at the regional level , ie. the European one , in the 1950s .

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  • Pierre-Hernan Rojas, 2016. "Triffin Dilemma and Regional Monetary Approach : An Appraisal," Working Papers hal-01298999, HAL.
    • Handle: RePEc:hal:wpaper:hal-01298999
    Note: View the original document on HAL open archive server: https://hal.science/hal-01298999
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    References listed on IDEAS

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    1. Helleiner, Eric, 2009. "Central bankers as good neighbours: US money doctors in Latin America during the 1940s," Financial History Review, Cambridge University Press, vol. 16(1), pages 5-25, April.
    2. Oscar L. Altman, 1961. "Professor Triffin on International Liquidity and the Role of the Fund," IMF Staff Papers, Palgrave Macmillan, vol. 8(2), pages 151-191, May.
    3. Ivo Maes, 2013. "On the origins of the Triffin dilemma," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(6), pages 1122-1150, December.
    4. Anonymous, 1965. "International Monetary Fund," International Organization, Cambridge University Press, vol. 19(4), pages 1052-1056, October.
    5. Pierre-Hernan Rojas, 2019. "The Structural Asymmetry of the International Gold Standard in Hawtrey’s Works," Post-Print hal-02058338, HAL.
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    Cited by:

    1. Miriam L. Campanella, 2019. "Far-Reaching Consequences of U.S. Financial Sanctions. The Dollar Shortage and the "Triffin Moment"," Working Papers 1285, Robert Triffin International.

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    Keywords

    international money; European Payments Union; Triffin Classification; Bretton Woods; International Monetary Fund; clearing mechanism;
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