Business Environment and International Business Socio-cultural factors and their influence on business Theories of international trade
Which of the following statements correctly represent the true essence of the Triffin Dilemma?
1
If a country’s currency is the global reserve currency, the country must run large trade surpluses.
2
The central bank of a country can have control over its exchange rate and its inflation, but not over its interest rates.
3
It's impossible for a country to have a fixed foreign exchange rate, a sovereign monetary policy, and free capital movement at the same time
4
If a country’s currency is the global reserve currency, there will be a conflict between short-term domestic objectives and long-term international objectives