ABSTRACT
The second fl aw is that there is a confl ict between the target of monetary policy of a reserve currency issuing country based on its domestic macroeconomic stability and the global need for reserve currency supply (Zhou, 2009). Moreover, any signifi cant change and mistake in monetary policy of a reserve currency country may have an unexpected and very often negative consequence to the rest of the world. Actually, the confl ict may also be interpreted as a serious failure of policy coordination between reserve-creating countries and reserve-holding countries. Under the dollar-centred regime, basically neither any single country nor the IMF can have any signifi cant impact on US monetary policy or other macroeconomic policies.
