COMMENT
Breadcrumb trail navigation:
By Fred Bergsten
Published: February 15 2011 22:42 | Last updated: February 15 2011 22:42
Many nations have long regarded the dominant international role of the dollar as bestowing an "exorbitant privilege" on the US. But the privilege has now become a burden. It is time for the US to anticipate, and begin to build, an era in which there will be several global currencies to rival its own.
Seen from abroad, the dollar's role provides automatic financing for US external imbalances and enables it to live beyond its means. At home it is understandable that US politicians, with their short-run time horizons, welcome this opportunity to evade needed discipline. But such pressure from abroad can be constructive in promoting needed adjustment.
You have viewed your allowance of free articles. If you wish to view more, click the button below.
Read Full Article »