Desmond Lachman: The Dollar Is A Mess, But Here’s Why The World Can’t Ditch It

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Global imbalances may not have been at the root of the financial crisis -- as some had warned -- but they're still dangerous.

Problem is, there's no great replacement for the dollar.

"You can't take the U.S. debt off the table quite yet," says AEI resident scholar Desmond Lachman, but adds that "I don't buy the notion that this whole crisis was because we had global imbalances."

Lachman's remarks came at an AEI event on the the subject, "Global Imbalances: The Next Crisis?" also featuring University of Virginia economist Frank Warnock.

Yesterday, we brought you Warnock's assessment; today, we bring you Lachman's.