kent nickell
Well-known member
It's interesting to compare Stiglitz's and Roubini's take on the possible loss of the dollar as the global reserve currency. Roubini points out the negatives but similar to Stiglitz he points out that this loss of confidence in our currency is actually forcing us to do things that are good for us in the long run.....
"""Now that the dollar’s position is no longer so secure, we need to shift our priorities. This will entail investing in our crumbling infrastructure, alternative and renewable resources and productive human capital — rather than in unnecessary housing and toxic financial innovation. This will be the only way to slow down the decline of the dollar, and sustain our influence in global affairs."""
http://www.nytimes.com/2009/05/14/opinion/14Roubini.html?_r=4
Op-Ed Contributor
The Almighty Renminbi
By NOURIEL ROUBINI
Published: May 13, 2009
snip
Now that the dollar’s position is no longer so secure, we need to shift our priorities. This will entail investing in our crumbling infrastructure, alternative and renewable resources and productive human capital — rather than in unnecessary housing and toxic financial innovation. This will be the only way to slow down the decline of the dollar, and sustain our influence in global affairs.
Nouriel Roubini is a professor of economics at the New York University Stern School of Business and the chairman of an economic consulting firm.
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Stiglitz in Freefall goes into detail as to why the US dollar shouldn't be used as the world's reserve currency..
As he wrote: "Even before the crisis, a global reserve system depending on one country's currency seemed out of synch with twenty-first-century globalization - but it seems especially so given the vagaries of the dollar and of US economics and politics."
We are misusing our currency by being able to just print what we need helping fuel America's profligacy and creating destructive deficits. China and other countries run large surpluses hoarding dollars for emergencies and thus taking this demand out of the economy. A well managed global reserve currency could help deal with both of these problems by taking the emphasis off the dollar and concentrating more on trying to level out these imbalances....
"""Now that the dollar’s position is no longer so secure, we need to shift our priorities. This will entail investing in our crumbling infrastructure, alternative and renewable resources and productive human capital — rather than in unnecessary housing and toxic financial innovation. This will be the only way to slow down the decline of the dollar, and sustain our influence in global affairs."""
http://www.nytimes.com/2009/05/14/opinion/14Roubini.html?_r=4
Op-Ed Contributor
The Almighty Renminbi
By NOURIEL ROUBINI
Published: May 13, 2009
snip
Now that the dollar’s position is no longer so secure, we need to shift our priorities. This will entail investing in our crumbling infrastructure, alternative and renewable resources and productive human capital — rather than in unnecessary housing and toxic financial innovation. This will be the only way to slow down the decline of the dollar, and sustain our influence in global affairs.
Nouriel Roubini is a professor of economics at the New York University Stern School of Business and the chairman of an economic consulting firm.
---------
Stiglitz in Freefall goes into detail as to why the US dollar shouldn't be used as the world's reserve currency..
As he wrote: "Even before the crisis, a global reserve system depending on one country's currency seemed out of synch with twenty-first-century globalization - but it seems especially so given the vagaries of the dollar and of US economics and politics."
We are misusing our currency by being able to just print what we need helping fuel America's profligacy and creating destructive deficits. China and other countries run large surpluses hoarding dollars for emergencies and thus taking this demand out of the economy. A well managed global reserve currency could help deal with both of these problems by taking the emphasis off the dollar and concentrating more on trying to level out these imbalances....
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