Adam Tooze: How stable is the profit dollar in an age of “speedball capitalism”?
The dollar remains the central currency of the world economy, but the economic logic underpinning that status is subject to continuous metamorphosis. This constant change leaves us struggling to understand and predict what the behavior of the “dollar system” may be. The reserve currency model that took shape in the 2000s centered above all recycling […]
Powerful pacifism and currency dominance: What 150 years of international monetary system regime switches say about the US dollar’s future
Michael Bordo Cécile Bastidon The 20th century shift from sterling to the dollar is often cited as evidence that currency dominance is not forever. This column presents a nonlinear model of the international monetary system calibrated on historical events. Shifts in dominance require large, simultaneous combinations of shocks, with democracy and conflicts playing a central […]