Mr Triffin's problem

Whether the euro survives or not remains a matter of opinion. However, there is little doubt that the currency has lost its sheen somewhat permanently. Its woes are far from over and if it were to survive, it would remain vulnerable to episodes of severe stress and panic. The fundamental inconsistency of running a currency union without a fiscal union is likely to resurface in different forms and weigh on the currency. Thus, by default, the turn of events in Europe has re-established the dollar’s hegemony as a global reserve currency.

Read Full Story>>