Triffin Dilemma

The Triffin Dilemma or Triffin Paradox is the conflict of economic interests that arises between short-term domestic and long-term international objectives for countries whose currencies serve as global reserve currencies. Robert Triffin believed the dollar could not survive as the world's reserve currency without requiring the United States to run ever-growing deficits. It articulated that a country that issues a reserve currency must balance its interests with the responsibility to make monetary decisions that benefit other countries.