Is The Reign of the Us Dollar Coming to an End?

G M Wessels

Studies in Economics and Econometrics, 2011, vol. 35, issue 1, 79-94

Abstract: The ascent to prominence of the US dollar was and still is supported by the US’s unmatched economic, financial, military and political position which allowed the dollar to fulfill all of the six required functions of a key currency in an unsurpassed way. The upsetting defect in the current dollar-based international monetary system is that the US is running increasing current account and budget deficits, high international debt levels and a significant decline in its net international investment position. These threaten the key currency status of the dollar. Although the dollar is set to maintain its dominant position and its accompanying benefits to the US over the short run, over the long run the dollar inevitably will have to make room for another ascending currency(ies) in view of the decline in the US’s international stature. This, however, contains the potential for serious financial instability, particularly during the transition period.

Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10800379.2011.12097217 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rseexx:v:35:y:2011:i:1:p:79-94

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsee20

DOI: 10.1080/10800379.2011.12097217

Access Statistics for this article

Studies in Economics and Econometrics is currently edited by Willem Bester

More articles in Studies in Economics and Econometrics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().