Exorbitant Privilege

Publisher : Oxford University Press

ISBN-13 : 9780199779611

Page : 224 pages

Rating : 4.5/5 from 611 voters

For more than half a century, the U.S. dollar has been not just America's currency but the world's. It is used globally by importers, exporters, investors, governments and central banks alike. Nearly three-quarters of all $100 bills circulate outside the United States. The dollar holdings of the Chinese government alone come to more than $1,000 per Chinese resident. This dependence on dollars, by banks, corporations and governments around the world, is a source of strength for the United States. It is, as a critic of U.S. policies once put it, America's "exorbitant privilege." However, recent events have raised concerns that this soon may be a privilege lost. Among these have been the effects of the financial crisis and the Great Recession: high unemployment, record federal deficits, and financial distress. In addition there is the rise of challengers like the euro and China's renminbi. Some say that the dollar may soon cease to be the world's standard currency--which would depress American living standards and weaken the country's international influence. In Exorbitant Privilege, one of our foremost economists, Barry Eichengreen, traces the rise of the dollar to international prominence over the course of the 20th century. He shows how the greenback dominated internationally in the second half of the century for the same reasons--and in the same way--that the United States dominated the global economy. But now, with the rise of China, India, Brazil and other emerging economies, America no longer towers over the global economy. It follows, Eichengreen argues, that the dollar will not be as dominant. But this does not mean that the coming changes will necessarily be sudden and dire--or that the dollar is doomed to lose its international status. Challenging the presumption that there is room for only one true global currency--either the dollar or something else--Eichengreen shows that several currencies have shared this international role over long periods. What was true in the distant past will be true, once again, in the not-too-distant future. The dollar will lose its international currency status, Eichengreen warns, only if the United States repeats the mistakes that led to the financial crisis and only if it fails to put its fiscal and financial house in order. The greenback's fate hinges, in other words, not on the actions of the Chinese government but on economic policy decisions here in the United States. Incisive, challenging and iconoclastic, Exorbitant Privilege, which was shortlisted for the FT Goldman Sachs 2011 Best Business Book of the Year, is a fascinating analysis of the changes that lie ahead. It is a challenge, equally, to those who warn that the dollar is doomed and to those who regard its continuing dominance as inevitable.

More Books:

Exorbitant Privilege
Language: en
Pages: 224
Authors: Barry Eichengreen
Categories: Business & Economics
Type: BOOK - Published: 2011-01-07 - Publisher: Oxford University Press

For more than half a century, the U.S. dollar has been not just America's currency but the world's. It is used globally by importers, exporters, investors, gove
Exorbitant Privilege
Language: en
Pages: 222
Authors: Barry Eichengreen
Categories: Business & Economics
Type: BOOK - Published: 2011-02-24 - Publisher: Oxford University Press

It is, as a critic of U.S.
The Princeton Encyclopedia of the World Economy. (Two volume set)
Language: en
Pages: 1336
Authors: Kenneth A. Reinert
Categories: Political Science
Type: BOOK - Published: 2010-08-02 - Publisher: Princeton University Press

Increasing economic globalization has made understanding the world economy more important than ever. From trade agreements to offshore outsourcing to foreign ai
The Exorbitant Burden
Language: en
Pages: 280
Authors: Taranza T. Ganziro
Categories: Business & Economics
Type: BOOK - Published: 2016-01-06 - Publisher: Emerald Group Publishing

This economic and political science work is a rigorous analysis that demonstrates that although it is a privilege and a benefit for the US to have its currency,
International Business
Language: en
Pages: 384
Authors: Alan M. Rugman
Categories: International business enterprises
Type: BOOK - Published: 2002 - Publisher: Taylor & Francis

This comprehensive four volume set includes all major contributions to the field of international business. It also includes key writings in the areas of intern
G7 Current Account Imbalances
Language: en
Pages: 448
Authors: Richard H. Clarida
Categories: Business & Economics
Type: BOOK - Published: 2007-11-01 - Publisher: University of Chicago Press

The current account deficit of the United States is more than six percent of its gross domestic product—an all-time high. And the rest of the world, including
The Century of the Emerging World
Language: en
Pages: 230
Authors: Paul Dobrescu
Categories: Political Science
Type: BOOK - Published: 2017-05-11 - Publisher: Cambridge Scholars Publishing

This book explores how the first decade of the 21st century was nothing short of “les années folles”. The impressive growth rate of emerging economies chan
The Future of the Dollar
Language: en
Pages: 272
Authors: Eric Helleiner
Categories: Business & Economics
Type: BOOK - Published: 2012-09-15 - Publisher: Cornell University Press

For half a century, the United States has garnered substantial political and economic benefits as a result of the dollar's de facto role as a global currency. I
Money, Markets, and Democracy
Language: en
Pages: 320
Authors: George Bragues
Categories: Political Science
Type: BOOK - Published: 2016-11-11 - Publisher: Springer

This book offers a comprehensive analysis of the ways that politics and financial markets impact one another. In this relationship, politics is the ultimate con
Untangling the US Deficit
Language: en
Pages: 272
Authors: Richard A. Iley
Categories: Business & Economics
Type: BOOK - Published: 2007-01-01 - Publisher: Edward Elgar Publishing

The book would be a good companion text for an undergraduate class in international finance or open-economy macroeconomics. Catherine L. Mann, Journal of Econom