Solve dollar riddle with price-adjusted swaps

Countries caught in a dollar trap should demand that the United States swaps nominal treasury bills for inflation-adjusted instruments, two prominent economists have argued.

Domingo Cavallo, a member of the Group of Thirty and a former chairman of the Central Bank of Argentina, and Joaquin Cottani, a former chief economist of the Mexico and Colombia department at the World Bank, have said that requiring America to exchange nominal bonds for their inflation-adjusted counterparts would serve to