The economy. The trilemma of reserves, activity, and inflation

A cycle of marked weakening of the US currency was beginning, with the exchange rate falling from $1.74 per euro in mid-December to $1.20 on January 26 this year. The weakening of the dollar worldwide slowed after the Donald Trump administration nominated Kevin Warsh to succeed Jerome Powell as head of the Federal Reserve, but the "backdrop" has not changed,…