The reason why is simple enough to understand: To maintain the reserve currency status, money-as-debt must be created to maintain international liquidity (provide the money for transactions to take place). This debt accumulates over time, and eventually becomes large enough that international creditors begin to question whether or not it can ever be paid back. When that day comes, the status of that currency as a reserve currency is called into question. Hence the "dilemma" in the name.
"Review of Robert Skidelsky, John Maynard Keynes: Fighting for Britain 1937–1946". Brad Delong, University of California at Berkeley. Archived from the original on 2009-10-14. Retrieved 2009-06-14.
The reason why is simple enough to understand: To maintain the reserve currency status, money-as-debt must be created to maintain international liquidity (provide the money for transactions to take place). This debt accumulates over time, and eventually becomes large enough that international creditors begin to question whether or not it can ever be paid back. When that day comes, the status of that currency as a reserve currency is called into question. Hence the "dilemma" in the name.
"Review of Robert Skidelsky, John Maynard Keynes: Fighting for Britain 1937–1946". Brad Delong, University of California at Berkeley. Archived from the original on 2009-10-14. Retrieved 2009-06-14.
