A lack of alternatives is a de-facto compulsion
Sir, Benn Steil says “The developing world should abandon parochial currencies”, January 17, and replace them with international accepted ones, arguing that the “key is to refound globalization on moneys that people will hold without compulsion”. In doing so, he somehow seems to forget that having no other alternative, results in just the same as having a compulsion. At this moment any developing country that has adopted the US dollar, or even any holder of dollars, must feel somehow uncomfortable knowing they are bound to face significant losses, in real terms, just because the USA wishes to address some of its current parochial economic imbalances through exchange corrections, asking, begging or coercing China to revalue... so they can avoid to devalue. Hah!
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