But the third and most significant change, from a Triffin perspective, is the following: there is no longer a fundamental global liquidity3 shortage that is intrinsic to the very functioning of  3  Borio and Zhu (2008) insightfully define liquidity is “the ease with which perceptions of value can be turned into purchasing power”. BIS central bankers’ speeches  3  the system.
The accumulation of global external imbalances in today’s world should not be seen as a necessary precondition for the provision of global liquidity and the expansion of world trade. Let me explain. Today, the United States and the euro area are not obliged to run rising current account deficits to meet the demand for dollars or euros.4 This is for two main, interlinked reasons.