The Triffin Dilemma

This our weekly discussion of the price level as it relates to Perry Mehrling's money view. The price level is the average price of goods in terms of money or, equivalently, the price of money in terms of goods. But what determines the price level? Why is the price level important? And how does it fit into the money view?

This week, we're discussing the "Triffin Dilemma"—an apparent tension between domestic interests and international interests in the management of the world reserve currency. We will read Robert Triffin's October 1959 oral statement to the Joint Economic Committee of Congress entitled "The International Monetary Position and Policy of the United States." This statement appears as the introductory chapter to his 1960 book.

Gold and the Dollar Crisis; The Future of Convertibility