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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Bob McCauley is a non-resident senior fellow at Boston University’s Global Development Policy Center and associate of the faculty of history at the University of Oxford.
What’s wrong with the international monetary and financial system? Stephen Miran, whom Donald Trump has nominated to head the US Council of Economic Advisers, thinks he has the answer.
In essence, he thinks we live in a neo-Triffin world:
1. Central banks buy dollars to hold down their currencies and to run surpluses on trade in goods and services.
2. Central banks hold their dollars in US Treasury securities.
3. The US dollar is overvalued and the US runs current account deficits.
4. US manufacturing shrinks and US workers have fewer good jobs.
5. Eventually US external deficits undermine US safety and…
