Former European Central Bank chief economist Otmar Issing said the U.S. is jeopardizing the international role of the dollar if it continues to ignore the causes of its current account deficit.
“The dollar still is a leading currency but policies in the U.S. -- if they continue -- are endangering the special position of the dollar,” Issing said in an interview with Deutschlandradio Kultur broadcast today. “The U.S. has to start at home. The approach to criticize Germany and make it responsible for global problems is misleading.”
Issing said he’s “glad” that G-20 leaders meeting in Seoul this week aren’t aiming for a “quick shot” in reducing global current-account imbalances. The yuan hasn’t appreciated enough, Issing added.