Robert Triffin facts for kids

Robert, Baron Triffin (born October 5, 1911 – died February 23, 1993) was an important Belgian-American economist. He is famous for pointing out a big problem with the Bretton Woods system. This system set how different countries' money was valued. His idea became known as Triffin's dilemma.

About Robert Triffin's Life

Robert Triffin first studied at the Catholic University of Leuven in Belgium. He then moved to the United States. In 1938, he earned his PhD from Harvard University. He taught there from 1939 to 1942.

After teaching, Triffin worked for several important organizations. These included the US Federal Reserve System (1942–1946) and the International Monetary Fund (1946–1948). He also worked for the Organisation for European Economic Co-operation (1948–1951), which is now called the OECD.

In 1951, he became a professor of economics at Yale University. He also led Berkeley College at Yale from 1969 to 1977.

Triffin became a US citizen in 1942. Later, in 1977, he became a Belgian citizen again and moved back to Europe. He strongly supported the idea of European integration. This means countries in Europe working closely together. He helped create the European Monetary System. He also supported the idea of a central bank for Europe. This bank later became the European Central Bank.

Triffin's Idea About Money

In 1959, Robert Triffin spoke to the United States Congress. He warned them about serious problems in the Bretton Woods system. This system made sure that the value of the US dollar was linked to gold. Other countries then linked their money to the US dollar.

Triffin noticed that there were too many US dollars outside of the US. This was called a "dollar glut." The US had promised to exchange dollars for gold. But by the early 1960s, there were more dollars outside the US than there was gold in the US Treasury.

After World War II, the US spent a lot of money around the world. This meant more dollars were needed for global trade. But this also meant the US had to spend more than it earned. This created a lot of dollars held by other countries.

Having so many dollars overseas made people worry. They wondered if the US could really keep its promise to exchange dollars for gold. The value of the dollar was set at $35 for one ounce of gold.

Triffin predicted that the system could not keep both things going at once. It couldn't provide enough dollars for global trade (called "liquidity") and also keep people confident in the dollar's value. This problem became known as the Triffin dilemma.

Many people didn't pay attention to his warning at first. But in 1971, his prediction came true. US President Richard Nixon had to stop exchanging US dollars for gold. This event is known as the Nixon Shock. It effectively ended the Bretton Woods System.

A fundamental reform of the international monetary system has long been overdue. Its necessity and urgency are further highlighted today by the imminent threat to the once mighty U.S. dollar.

– Robert Triffin

Awards and Recognition

• He received an honorary degree from the University of Pavia in 1991.

See also

In Spanish: Robert Triffin para niños

• Jacques van Ypersele de Strihou