The Future of the Dollar (Cornell Studies in Money)

About this book

For half a century the United States has garnered substantial political and economic benefits as a result of the dollars de facto role as a global currency. In recent years however the dollars preponderant position in world markets has come under challenge. The dollar has been more volatile than ever against foreign currencies and various nations have switched to non-dollar instruments in their transactions. China and the Arab Gulf states continue to hold massive amounts of U.S. government obligations in effect subsidizing U.S. current account deficits and those holdings are a point of potential vulnerability for American policy. What is the future of the U.S. dollar as an international currency? Will predictions of its demise end up just as inaccurate as those that have accompanied major international financial crises since the early 1970s? Analysts disagree often profoundly in their answers to these questions. In The Future of the Dollar leading scholars of dollars international role bring multidisciplinary perspectives and a range of contrasting predictions to the question of the dollars future. This timely book provides readers with a clear sense of why such disagreements exist and it outlines a variety of future scenarios and the possible political implications for the United States and the world.