This is an excellent analysis but I wonder if something basic is being overlooked.
Before the willingness to respond to world needs matters, there must be the capacity to respond to world needs.
#money
Before the willingness to respond to world needs matters, there must be the capacity to respond to world needs.
#money
https://twitter.com/michaelxpettis/status/1382275638720102401
Lichtenstein was extremely responsive to the needs of international corporations and presumably would have been eager to have a world reserve currency if it were not running on Swiss francs. But it had no capacity to do so.
"This is silly," you might say. "Lichtenstein is a tiny microstate, not even in the running!"
Ok. Apply this to someone bigger.
Did 1970s China have the capacity to function as administrator of a world reserve currency, in the manner described above?
Ok. Apply this to someone bigger.
Did 1970s China have the capacity to function as administrator of a world reserve currency, in the manner described above?
Of the 200-odd countries that existed over the past 100 years, the VAST majority of them were fundamentally incapable of functioning as administrators of world reserve currency.
In such a situation it's a little odd to say the will is what matters most.
It's capacity first.
In such a situation it's a little odd to say the will is what matters most.
It's capacity first.
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