Foreign Currency Reserve & Function United States, Russia, and China
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Authors
Kim, Gew-rae
Issue Date
2022-04-06
Type
Other
Language
en
Keywords
Foreign currency , Global financial transactions , China , Russia , Bretton Woods system
Alternative Title
Abstract
In October 1959, a Yale professor sat in front of Congress’ Joint Economic Committee and calmly announced that the Bretton Woods system was doomed. The dollar could not survive as the world’s reserve currency without requiring the US to run ever-growing deficits. This dismal scientist was Robert Triffin, and he was right. The Bretton Woods system collapsed in 1971, and today the dollar’s role as the reserve currency has the US running the largest current deficit in the world.