The impact on the U.S. Dollar of the conflict between the American locomotive’s model and the emerging economies’ autopoietic growth

Carlo Viviani () and Paolo Savona
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Paolo Savona: LUISS 'Guido Carli' University, Roma, Italy

International Finance from EconWPA

Abstract: The purpose of this paper is to put the future of the US dollar into a logical framework which comprises the global development mechanism. Two models of growth collide: the US «locomotive», based on the international use of the dollar, and which requires exogenous pushes coming permanently from the foreign deficit and periodically from the public deficit, and the «endogenous», or «autopoietic». The engine of autopoietic growth is the process of globalization, alimented by foreign investments and the emerging economies’ domestic demand, which in turn require the establishment of an international monetary standard. In absence of a real international cooperation, the conflict of the two models might bring a global currency crisis and a fall in the global growth rate, with a possible negative impact in foreign relations and policies at the global level.

Keywords: International monetary system; Dollar; Euro; Exchange rate; Economic growth; International Finance; International Political Economy. (search for similar items in EconPapers)
JEL-codes: F02 F31 F33 F42 (search for similar items in EconPapers)
Date: 2005-04-27
Note: Type of Document - pdf; pages: 20
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpif:0504009

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