Desmond Lachman: The Dollar Is A Mess, But Here's Why The World Can't Ditch It

lachman aei global imbalances

Global imbalances may not have been at the root of the financial crisis — as some had warned — but they’re still dangerous.Problem is, there’s no great replacement for the dollar.

“You can’t take the U.S. debt off the table quite yet,” says AEI resident scholar Desmond Lachman, but adds that “I don’t buy the notion that this whole crisis was because we had global imbalances.”

Lachman’s remarks came at an AEI event on the the subject, “Global Imbalances: The Next Crisis?” also featuring University of Virginia economist Frank Warnock.

Yesterday, we brought you Warnock’s assessment; today, we bring you Lachman’s.

SEE WHY GLOBAL IMBALANCES ARE BAD, BUT WHY WE CAN’T DITCH THE DOLLAR EITHER>>>

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title=”More bank write-downs are coming…”
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title=”And yes, we still have a big global imbalance problem”
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permalink=”current-account-still-not-good-5″
title=”Current account still not good…”
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title=”…and big global imbalances”
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permalink=”plus-chinas-trade-surplus-9″
title=”Plus China’s trade surplus…”
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permalink=”adjustment-is-far-from-complete-11″
title=”Adjustment is far from complete”
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permalink=”see-china-for-example-12″
title=”See China, for example”
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title=”Basically, the world still lives on dollars”
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[slide
permalink=”not-convinced-15″
title=”Not convinced?”
content=”Check out U Va. economist Frank Warnock’s assessment.
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