The Rethinking Of The International Monetary System

Fifty years ago, the world changed. On August 15, 1971, US President Richard Nixon slammed shut the “gold window,” suspending dollar convertibility. Although it was not Nixon’s intention, this act effectively marked the end of the Bretton Woods system of fixed exchange rates. But, in truth, with the rise of private cross-border capital flows, a system […]

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A Digital Nixon Shock?

US President Richard Nixon’s 1971 decision to end the US dollar’s convertibility into gold had such far-reaching consequences that it took policymakers decades to learn to manage the new system. Now, digital technologies are driving a new monetary revolution that could end the greenback’s global primacy altogether. Read More Here

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How An Overheated U.S. Economy Could Create Chaos

This year’s recently released U.S. Treasury Foreign Exchange Report reads like Hamlet would read if we excluded the Prince of Denmark. In seeking the sources for world external imbalances and for global currency misalignments, the Treasury looks everywhere other than where the main source of these imbalances now resides. Read Here | The National Interest

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Coming Soon: The Demise Of The U.S. Dollar?

There are many reasons to worry about the U.S. dollar’s underlying economic fundamentals. However, before despairing that America is well on the way to a dollar crisis a person might want to ask two questions. First, does the dollar have any serious rival to displace it as the world’s international reserve currency? Second, would the […]

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The Year Of The Renminbi?

After years of poor policy and political tumult in the United States, it is not unreasonable to ask whether China’s currency will soon be in a position to challenge the greenback. While neither country has been doing itself any favours in the currency pageant, it is worth remembering that history is not on America’s side. […]

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The Calm Before The Exchange-Rate Storm?

Core dollar exchange rates have so far been surprisingly stable during the pandemic, most likely because major central banks’ policy interest rates are effectively frozen at or near zero. But although the current stasis could last awhile, it will not last forever. Read Here | Project Syndicate

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It Is Time To Abandon Dollar Hegemony

To date, there is little reason to think that global demand for dollars is drying up. But there is another way the United States could lose its status as issuer of the world’s dominant reserve currency: it could voluntarily abandon dollar hegemony because the domestic economic and political costs have grown too high. Read Here […]

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Perfect Storm Sinking The Almighty Dollar

The “dollar-is-crashing” trade is the ultimate widow-maker. For decades, it’s confounded more punters than bets against Chinese stocks, Japanese debt and Hong Kong property combined. Yet might it soon pay off, finally, thanks to Donald Trump’s blunderbuss of a White House? The odds don’t favour it, at least for now. Read Here – Asia Times

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