scholarly journals The US dollar and new imperialism under the logic of capital accumulation

2019 ◽  
Vol 2 (1) ◽  
pp. 98-107
Author(s):  
Haiping Qiu ◽  
Min Zhao
Keyword(s):  
Capital Accumulation ◽  
International Monetary System ◽  
Content Type ◽  
Monetary System ◽  
The Us ◽  
The World ◽  
The Status ◽  
The Usa ◽  
New Imperialism ◽  
Us Dollar

Purpose The world currency is endowed with two inherent contradictions, namely, the general contradiction of all currencies and the special contradiction between the quality and quantity of the world currency. The paper aims to discuss these issues. Design/methodology/approach In the wake of the Second World War, the USA, with its strong economic and military strength, established an international monetary system centered on the US dollar (USD). This gave USD the status of “world currency” and bounded it to the US imperialist hegemony with mutual integration and interaction, making it possible for USD capital to conduct international exploitation and wealth plundering extensively around the world. Findings The contradiction between the capital logic and the power logic, which is inherent in capital accumulation models of the new imperialism, also indicates the inevitable decline of USD. Originality/value This constitutes an important feature of the new imperialism. However, as a sovereign currency, USD has inextricable and inherent contradictions while exercising its function as the world currency.

scholarly journals Bretton Woods 2 system and US balance of payment deficit

2008 ◽  
Vol 60 (1) ◽  
pp. 116-136
Author(s):  
Zaklina Stepanovic-Petrac
Keyword(s):  
International Monetary System ◽  
Financial Architecture ◽  
Bretton Woods ◽  
Monetary System ◽  
International Financial Architecture ◽  
National Currencies ◽  
The Us ◽  
The Usa ◽  
Us Dollar ◽  
Foreign Exchanges

The author explores the evolution, functioning, similarities and differences between the original Bretton Woods international monetary system that operated from 1945 to 1973 and the present modified institution, which is symbolically called Bretton Woods 2 System. The existing international financial architecture keeps on being based on the hegemony of the US dollar, as a dominant reserve currency. However, in spite of the fact that in most cases the present international monetary system implies the regime of flexible foreign exchanges rates, a characteristic of this system is that many countries in different degrees refuse to accept the appreciation of their national currencies to the US dollar. At the same time, the domination of the USA, the most indebted country in the world, is becoming a very serious threat to its sustainability. However, as the author concludes, the creators of the international monetary system, being aware how serious could be the consequences of its cessation, endeavor to extend its operation accepting less expensive consequences of keeping it alive.

scholarly journals Potential Competitiveness of Pound in Post-Crisis World

2020 ◽  
Vol 64 (12) ◽  
pp. 44-53
Author(s):  
A. Kuznetsov
Keyword(s):  
Global Financial Crisis ◽  
International Monetary System ◽  
Relative Size ◽  
External Debt ◽  
Foreign Companies ◽  
Monetary System ◽  
International Currencies ◽  
The World ◽  
The Usa ◽  
The Global Financial Crisis

The author discusses the factors and trends that determine the British pound’s competitive position in various segments of the international monetary system. Despite the devaluation effect caused by Brexit, the pound is still the most expensive of the key international currencies. On the one hand, this is due to the fact that the ratio of the British pound monetary aggregate M1 to GDP is significantly lower than that of other major economies – issuers of reserve currencies. Thus, the pound has the lowest monetary risk of depreciation compared to other currencies. On the other hand, the international significance of the pound sterling is explained by the ability of British economy to service the huge external debt, which in relative size is the largest among the leading economies of the world. This state of affairs is achieved due to the fact that London is home to the largest number of foreign companies in the world that carry out operations in various Eurocurrencies, acting simultaneously as the main issuers of external debt obligations. The attractiveness of the pound sterling as the currency for the nomination of international debt instruments is due to the less risky currency profile of the pound sterling, as well as the relatively higher profitability of debt instruments. After the global financial crisis, the share of the pound in the official reserves of other countries and in the implementation of international payments is gradually increasing. The author comes to the conclusion about the possible strengthening of the future role of the pound as a stabilizer of international economic relations against the backdrop of an increase in unpredictable events taking place on both sides of the Atlantic such as fiscal crisis of the euro area, Brexit, the growing political tension in the USA, COVID 19. These events are increasingly threatening leading positions of the US dollar and the euro as the key international currencies.

scholarly journals Changes in the international monetary system: opportunities and risks for the US dollar

2020 ◽  
Vol 183 (5-6) ◽  
pp. 4-16
Author(s):  
Alicja Sielska ◽  
Keyword(s):  
Research Question ◽  
International Monetary System ◽  
Balance Of Power ◽  
Monetary System ◽  
National Currencies ◽  
The Us ◽  
Leading Position ◽  
Us Dollar ◽  
Global Arena ◽  
European Economies

In the 1940s, the US dollar was established as an international currency. Since then, its position has been practically unchallenged. However, in light of the financial crisis of 2008, the strengthening of the Chinese and European economies, and the COVID-19 pandemic, it is necessary to reflect on the future balance of power in the international monetary system. To this end, this article poses the following research question: is the US dollar facing a threat to its leading position in the global arena? First, I describe the historical currency system and the position of the dollar after the 2008 crisis; next I analyze the pandemic up through the end of June 2020. Then, I consider three possible scenarios for the dollar. First, it is possible to create a new global currency which would consist of a basket of the five most important world currencies. The second option is to replace the dollar with another currency, especially the euro or the renminbi. The third and most probable scenario is the compresence of several competing national currencies in international trade. Abandoning the dollar is possible, but it would require significant financial and institutional changes. This means that in the absence of any easy solutions for dethroning the US currency, it will remain the world’s leading currency.

Generational cohort theory and wine: analyzing how gen Z differs from other American wine consuming generations

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Liz Thach ◽  
Sam Riewe ◽  
Angelo Camillo
Keyword(s):  
World Population ◽  
Sparkling Wine ◽  
Generational Cohort ◽  
Content Type ◽  
Age Cohorts ◽  
The Us ◽  
The World ◽  
The Usa ◽  
Wine Market ◽  
Cohort Theory

Purpose The purpose of this paper is to identify the wine consumption preferences and behavior of Gen Z wine consumers in the USA and to determine if and how Gen Z differ from other major generational cohorts in the USA. This study applies the concepts of generational cohort theory to the US wine market to examine similarities and differences between age cohorts and their potential impact on future wine sales. Design/methodology/approach A quantitative survey was conducted with a quota sample of 1,136 US wine consumers located in all 50 states. Data analysis included one-way ANOVA analysis to test the null hypothesis that the generational cohort means are equal. If the test detected at least one mean difference across cohorts, then pairwise comparisons were performed to identify, which groups differed. The Tukey–Kramer method was used for all post hoc tests. Basic descriptive statistics were also calculated. Findings The results show some parallels in terms of similar consumption levels and a higher preference for red wine across all cohorts. However, on the majority of other common wine consumer research topics, Gen Z shows significant differences. Of specific interest, Gen Z consumers report higher levels of preference for sparkling wine than other cohorts; prefers to drink in social situations; are much more interested in labels and package; make decisions based on varietal and alcohol level and are much more engaged on Instagram and Snapchat social media platforms – all pointed to new marketing tactics needed to reach this new consumer segment. Originality/value This is the first empirical wine research study to explore the wine preferences and behaviors of Gen Z in the US market. This is valuable because Gen Z is a very large population of consumers, comprising 32% of the world population (Miller and Wei, 2018) and already represent more than $143bn in buying power (Dill, 2015). They are expected to have a huge impact on consumer products, not only in the USA but also on a global basis. Given that the USA is currently the largest wine market in the world in both volume and value (Wine Institute, 2019; VinExpo, 2018), it is important that research is conducted on this new and powerful generation.

scholarly journals Stablecoins, Central Bank Digital Currencies and US Dollar Hegemony

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Luca Fantacci ◽  
Lucio Gobbi
Keyword(s):  
First Generation ◽  
International Monetary System ◽  
Global Scale ◽  
Electronic Payment ◽  
Payment Systems ◽  
Monetary System ◽  
Payment Instruments ◽  
The Us ◽  
Us Dollar ◽  
Main Flaw

Abstract Stablecoins are second generation cryptocurrencies, aimed at maintaining their value stable with respect to official currencies. The most famous example is perhaps represented by libra, the cryptocurrency announced by Facebook in 2019 and yet to be issued; the most widespread is tether, with a market capitalization of almost 10 billion dollars and a daily transaction volume of almost 50 billion dollars, which makes it the most used cryptocurrency. The diffusion of stablecoins is hardly surprising. By minimizing volatility – the main flaw of first generation cryptocurrencies, including bitcoin –, stablecoins are expected to play an even more important role on a global scale within a few years. Our contribution deals not with the economic, but specifically with the geopolitical factors that could foster the use of stablecoins for strategic and military purposes. In particular, we focus on how such payment instruments, together with other alternative electronic payment systems, could be used as a means to circumvent economic sanctions and ultimately as a challenge to the hegemony of the US dollar in the international monetary system.

The Principles and Operation of the Bretton Woods International Monetary System in the Years 1944–1971. The Reasons for Its Collapse

2016 ◽  
Vol 8 (2) ◽  
pp. 0-0
Author(s):  
Zbigniew Klimiuk
Keyword(s):  
International Trade ◽  
World Economy ◽  
International Monetary System ◽  
The United States ◽  
International Liquidity ◽  
Bretton Woods ◽  
Monetary System ◽  
The Us ◽  
The World ◽  
The Stability

The subject of the article is an analysis of the role of the US dollar in the development of international trade and the world economy during the period of the Bretton Woods monetary system (1944–1971). The international monetary system existing at that time was, in principle, a gold exchange standard based mainly on the national currency of the United States. However, a relatively small role was also played by other currencies including, in particular, the pound sterling. It should be noted that the Bretton Woods rules did not match the conditions in the world economy which emerged after World War II. The main areas of criticism concerned such assumptions as the maintenance of an official fixed price for gold, or a too narrowly interpreter postulate for the stability of the exchange rate. On the other hand, it should be noted that the introduction of the stability of exchange rates and the abolition of restrictions on payments were fundamentally sound decisions. They led in fact to the minimisation of a risk inherent in international trade and its rapid growth. One should also emphasise the fact that from the very beginning, in the international gold based monetary system there was an internal contradiction (paradox), which eventually led to its collapse. This was namely the fact that the growth in world trade created a growing demand for international liquidity. This was tantamount to a necessity to maintain a permanent balance of payments deficit in respect of the country whose currency was considered the key currency. At the same time, the growing volume of the US currency resulted in an increasing crisis of confidence in the dollar.

Shaping the Future of the IMS: Regionalization of Selected Asian Currencies

2015 ◽  
Vol 01 (03) ◽  
pp. 347-372
Author(s):  
Il Houng Lee
Keyword(s):  
International Monetary System ◽  
Policy Coordination ◽  
Monetary System ◽  
Tier System ◽  
The Us ◽  
Asian Economies ◽  
Market Framework ◽  
Us Dollar ◽  
Second Tier ◽  
Recent Financial Crisis

The dominance of the US Dollar (USD) as the main global reserve currency will continue for the foreseeable future. Yet various events, including the most recent financial crisis, have pointed to the need for an alternative system that will strengthen market discipline rather than a system relying excessively on policy coordination. The rise of Asian economies led by China provides a unique opportunity for a regionalization of selected Asian currencies, namely, the settling of current account transactions among Asian economies using selected local currencies. To do so, relevant governments should be more proactive in setting up a market framework by following similar steps taken by China for RMB internationalization. This will provide an opportunity for the market to determine how fast it wants to shape an alternative international monetary system. Most likely, a tri-polar and two-tier system will emerge. As the medium of exchange and unit of account, the first tier, the USD, the Euro, and the RMB will dominate, forming a tri-polar system along each of which various local currencies will be used specific to the locality. As the store of value, the second tier, the USD will retain its hegemony for a few more decades. Gradually, these two tiers will merge.

scholarly journals THE IMPACT OF THE RENMINBI INTERNATIONALIZATION ON THE GLOBAL MONETARY ORDER

2019 ◽  
Vol 1 (2) ◽  
pp. 13-30
Author(s):  
Katarzyna Twarowska
Keyword(s):  
Foreign Exchange ◽  
International Monetary System ◽  
International Currency ◽  
Monetary System ◽  
International Money ◽  
The Us ◽  
Us Dollar ◽  
The Stability ◽  
The Impact ◽  
Research Analysis

Background and the purpose: The Chinese economy is the fastest growing and changing economy in the modern world. The importance of the renminbi as an international currency is not relevant to China's economic potential and role in the global economy, however, many scientific studies indicate that the position of that currency in the functions of international money will become stronger in the future. This encouraged the author to assess the consequences of the renminbi internationalisation, in particular the impact on the stability of the international monetary system. An additional aim of the paper is to present the possible scenarios for reform of the international monetary system and assess whether the Chinese currency has a chance to become a global currency. Methods: The assessment of the renminbi’s role in global foreign exchange relations was carried out by analysing the use of Chinese currency in the main functions of international money in official sector (reserve currency, intervention currency, anchor currency) and private sector (investment currency, vehicle currency in international trade and on the foreign exchange market, invoicing and quotation currency) using the Cohen matrix. The author also assessed the benefits for the stability of the international monetary system, resulting from the transition from a system based on the dominance of the US dollar to a multi-currency system, including the renminbi. The study included theoretical research (analysis of the literature and research reports) and empirical research (analysis of statistical data). Results and conclusions: The author confirmed the research hypothesis: An increase in the use of renminbi in the functions of international currency will increase the stability of the international monetary system by reducing the dependence of this system on the single currency, which is the US dollar.

The Long-Predicted Failure of the Post-Bretton Woods “Non-System”

2022 ◽  
pp. 1-8
Keyword(s):  
Saudi Arabia ◽  
Exchange Rates ◽  
Bretton Woods ◽  
Monetary System ◽  
The Us ◽  
The World ◽  
Us Government ◽  
Oil Shock ◽  
World Economic ◽  
Us Dollar

The monetary system implemented at Bretton Woods in 1944 made the US dollar the centre of the world economic system, with 43 other countries' currencies linked to it via fixed exchange rates. However, once the US government broke its promise to redeem dollars in gold at $35 per ounce on August 15, 1971, expansion of the supply of dollars was no longer constrained, and like many currencies before it, the lack of monetary discipline led to inflation through which the value of the dollar has fallen by about 98%. The “oil shock” of the 1970s led to the introduction of the “petro-dollar” system whereby Saudi Arabia, then the largest oil producer, agreed to accept only US dollars in payment for its oil in exchange for the US government's pledge to defend it. This shored up demand for the fiat US dollar, enabling it to survive until its now approaching endgame.

Dollar could plausibly lose its global dominance

2017 ◽  
Keyword(s):  
19Th Century ◽  
International Monetary System ◽  
Central Banks ◽  
Smooth Transition ◽  
Nation State ◽  
Late 19Th Century ◽  
Content Type ◽  
Us Economy ◽  
Monetary System ◽  
The Us

Subject Questions over the future of the international monetary system. Significance The topic of primacy in the international monetary system is slippery, because the international monetary system in an era of nation-state central banks dates only from the late 19th century. There have been few changes in dominant-currency status in that time, making it difficult to be definitive about why currencies gain and relinquish top-currency status. Nevertheless, the advent of a heterodox US administration necessitates unorthodox thinking -- and the US currency is one place the new president could make his mark. Impacts Numeraire-currency status is a double-edged sword; its loss would not be unambiguously bad for the US economy. The value of the dollar has been supported by numeraire status, arguably to the detriment of US trade. The danger in this scenario is in achieving a smooth transition to a new numeraire currency.

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