Triffin Paradox in the United States

Triffin Paradox in the International Business Landscape

Definition of Triffin Paradox in the context of U.S. international business and public trade policy: Paradox that resulted from reliance on the U.S. dollar as the primary source of liquidity in the Bretton Woods system; for trade to grow, foreigners needed to hold more dollars; the more dollars they held, however, the less faith they had in the U.S. dollar, thereby undermining the Bretton Woods system.