https://www.imf.org/external/np/exr/center/mm/eng/mm_sc_03.htm#:~:text=Triffin's%20Dilemma,contractionary%20spiral%2C%20leading%20to%20instability.&text=If%20U.S.%20deficits%20continued%2C%20a,break%20down%2C%20leading%20to%20instability.

Learned about Triffin's Dilemma today.

Essentially, if the US deficits keeps getting worse, confidence in the dollar will erode and its status as the reserve currency will disappear. On the other hand, if liquidity isn't introduced into the world, the economy will contract.

He proposed replacing the dollar's role as the world's primary reserve currency with a new reserve unit.