Despite signs over the decades that the world role of the dollar has been problematic, and much recent commentary pointing to signs that de-dollarization is happening, questioning of the role of the dollar in the international monetary... more
Despite signs over the decades that the world role of the dollar has been problematic, and much recent commentary pointing to signs that de-dollarization is happening, questioning of the role of the dollar in the international monetary system has been remarkably untheoretical and unhistorical fashion. Since no heap of facts, no matter how large, can amount to an argument, this is a serious intellectual liability. Moreover, the world has been paying, at least the 1980s, a heavy price for this lack of understanding. The purpose of this paper is to clear up this misunderstanding by pointing to the largely ignored intimate and necessary relationship between financialization-of the Western economies and the pressures they generate for the rest of the world to follow suit, exposing them to dangerous financial and currency volatility-and the dollar-centred international monetary system. This relationship can only be understood by putting the dollar's world role in the longer historical perspective of the modern international monetary system, going back to the role of the pound sterling under to so-called international gold standard.
De les mines d'argent de la Nova Espanya i Potosí a les reserves àuries dels bancs centrals, dels napoleons d'or a les incerteses de la moneda única europea, dels sobirans d'or de l'Imperi britànic als greenbacks dels Estats Units.
In its essence and content, dollarization is one of the keys and most significant phenomena of modern dynamically developing international monetary and financial relations. There are different theoretical approaches to determining the... more
In its essence and content, dollarization is one of the keys and most significant phenomena of modern dynamically developing international monetary and financial relations. There are different theoretical approaches to determining the economic essence and content of the complex and contradictory phenomenon of dollarization. Different scientists have investigated the monetary nature of this phenomenon and have given a comparison of the concepts of official and partial dollarization, based on the degree of economic coverage of dollarization. In this research the process of official dollarization is considered on the example of Eurasian Economic Union (EAEU) member states. The paper examines the scale of financial dollarization in the EAEU member states, where, due to the loss of residents' confidence in the monetary policy and the national monetary unit, the functions of the national currency are partially replaced by the US dollar. Furthermore, the role of the US Federal Reserve in the implementation of dollarization of the foreign economies is analyzed. The article substantiates the intention of the US Federal Reserve to take steps to dollarize the foreign countries’ economy in the context of the started process of de-dollarization of the world economy. The most active supporters of de-dollarization are Russia, China, and Iran. Their efforts are aimed at weakening the dominant position of the dollar as a key reserve currency, the currency of international settlements. In the current condition of the world economic development, it is unlikely to expect a weakening of the position of the US dollar, given the role of the US dollar in the trade of oil and petroleum products. The petrodollar system is the basis of the US dominance in the global financial system and the key to the stability of the US dollar. As a result, countries are forced to buy dollars in order to be able to purchase oil on the open market. While the demand for the US dollar will remain at a high level, it is not necessary to talk about the success of de-dollarization and the transition from an American-centered monetary and financial system to a polycentric one in the near future.
Liberia has been a dollarized nation almost for as long as the nation has existed. However, since the end of the crisis, the nation is faced with a choice of keeping the policy or scraping it. This paper examines the issues surrounding... more
Liberia has been a dollarized nation almost for as long as the nation has existed. However, since the end of the crisis, the nation is faced with a choice of keeping the policy or scraping it. This paper examines the issues surrounding the keeping or discarding of the dollarization policy. What are the benefits of maintaining it, adopting a mix or formulating a new policy all together.
L’ensemble des orateurs de la table optent pour une rerielisation très progressive et market-driven. Ils sont soutenus dans ce choix par la littérature internationale. Toutefois, cette orientation fait abstraction du nouveau contexte... more
L’ensemble des orateurs de la table optent pour une rerielisation très progressive et market-driven. Ils sont soutenus dans ce choix par la littérature internationale. Toutefois, cette orientation fait abstraction du nouveau contexte mondial de grande instabilité financière et monétaire que la crise de 2007-2008 aux USA a mis en évidence. On ne peut faire abstraction des risques d’une nouvelle crise financière encore plus profonde concernant cette fois non plus les dettes privées comme celle de 2007- 2008, mais les dettes publiques et corrélativement les monnaies. Une crise profonde des devises de référence actuelles, le dollar et l’euro, doit être envisagée sérieusement. Compte tenu de la forte dépendance de l’économie cambodgienne à l’égard de la politique monétaire étatsunienne, une crise du dollar précipiterait la nécessité d’une rerielisation et un plan d’urgence devrait être conçu pour faire face à une telle éventualité. Par ailleurs, même sans crise majeure du système monétaire et financier international, une stratégie à long terme pour la rerielisation devrait prendre en compte la probabilité d’évolutions possibles différentes de ce système et de ce que ces évolutions impliqueraient du point de vue d’une rerielisation.
