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Instability, Liquidity and World Money: Perspectives on the US Dollar,Used
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The need for an international currency dates back to at least the Byzantine Empire. The United States Dollar has been the leading world money since at least the Bretton Woods agreement. However, in recent years the flaws of the Dollar standard have become prominent and competition has presented itself to the Dollar regime. What does the future hold for the Dollar Standard? International trade flows have never been larger nor more essential to sustained global growth, making a medium of exchange all the more essential. What will happen to international trade if the Dollar standard is replaced? What will happen to America's political power when its currency is not longer the international unit of exchange? This essay analyzes the current status of the Dollar as world money and evaluates its future as the world's leading international currency.
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