"Many nations have long regarded the dominant international role of the dollar as bestowing an "exorbitant privilege" on the United States. But the privilege has now become a burden. It is time for the United States to anticipate, and begin to build, an era in which there will be several global currencies to rival its own.
Seen from abroad, the dollar's role provides automatic financing for US external imbalances and enables it to live beyond its means. At home it is understandable that US politicians, with their short-run time horizons, welcome this opportunity to evade needed discipline. But such pressure from abroad can be constructive in promoting needed adjustment..."
at http://www.piie.com/publications/opeds/oped.cfm?ResearchID=1767&utm_source=feedburner&utm_medium=%24%7Bfeed%7D&utm_campaign=Feed%3A+%24%7Bupdate%7D+%28%24%7BPIIE+Update%7D%29
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