The debate over the dollar’s ability to maintain its dominant role in the global economy has intensified considerably over the past eighteen months. For some, a tipping point is approaching at which the world will abandon the dollar. For others, the currency’s inherent strengths will make it resilient even in the face of the latest …
Tag: sterling
The specter of the IMF hangs over Britain and the new debt crisis
The latest turmoil in UK bonds has drawn comparisons to the collapse of Liz Truss’s 2022 mini-budget, but a parallel with the debt crisis of the 1970s may be more apt. About ten days ago the British pound came under sustained downward pressure amid a fall in the value of UK government bonds, which arose …
How is one global reserve currency replaced by another?
Over the past century, monetary systems have changed about every 30-40 years on average, according to the evidence of monetary history. Today, the existing monetary system is over 50 years old, so its transformation is long overdue. There are persistent attempts by different states to dethrone the US dollar as the world’s leading reserve currency …