The U.S. Dollar and the World Economy: A Critical Review

Research output: Contribution to journalArticle

Abstract

The relative decline of the U.S. as a global economic power is clear, and can be seen in the statistics. However, the U.S. decline is nevertheless a slow one, and carries all sorts of unprecedented dangers for the world. The U.S. is definitely in a less powerful position than previously with respect to production, but it is still successfully siphoning off much of the economic surplus (or surplus value) created in the developing countries via the operations of its multinational corporations and its hegemony over the global financial architecture. With respect to U.S. financial dominance, the key issue becomes the continuation of the dollar as the hegemonic currency, which is currently threatened by the rise of China. This paper intends to critically analyse the performance of the U.S. economy and also the role played by the U.S .dollar in the international payment and in reserve currency. The study will also examine the expansion of Chinese economy and importance of the gradual development of a multicurrency system with the intention of reducing the growing balance of payments deficit putting pressure on a single reserve currency. This study has followed doctrinaire methodology, which includes analytical, descriptive and comparative methods. This article concludes that the U.S. economy is currently suffering from a serious trade deficit and the position of the U.S. dollar is under genuine threat from the renminbi, the renminbi will not be able to replace the U.S. dollar as the global currency for at least the next decade.
LanguageEnglish
Number of pages23
JournalAthens Journal of Business & Economics
Early online date21 May 2019
Publication statusE-pub ahead of print - 21 May 2019

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World economy
Renminbi
Currency
Reserve currency
US economy
Economic surplus
Threat
Hegemony
Methodology
Multinational corporations
Statistics
China
Analytical methods
Surplus value
Developing countries
Balance of payments
Economic power
Comparative method
Payment
Chinese economy

Cite this

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abstract = "The relative decline of the U.S. as a global economic power is clear, and can be seen in the statistics. However, the U.S. decline is nevertheless a slow one, and carries all sorts of unprecedented dangers for the world. The U.S. is definitely in a less powerful position than previously with respect to production, but it is still successfully siphoning off much of the economic surplus (or surplus value) created in the developing countries via the operations of its multinational corporations and its hegemony over the global financial architecture. With respect to U.S. financial dominance, the key issue becomes the continuation of the dollar as the hegemonic currency, which is currently threatened by the rise of China. This paper intends to critically analyse the performance of the U.S. economy and also the role played by the U.S .dollar in the international payment and in reserve currency. The study will also examine the expansion of Chinese economy and importance of the gradual development of a multicurrency system with the intention of reducing the growing balance of payments deficit putting pressure on a single reserve currency. This study has followed doctrinaire methodology, which includes analytical, descriptive and comparative methods. This article concludes that the U.S. economy is currently suffering from a serious trade deficit and the position of the U.S. dollar is under genuine threat from the renminbi, the renminbi will not be able to replace the U.S. dollar as the global currency for at least the next decade.",
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The U.S. Dollar and the World Economy : A Critical Review. / Siddiqui, Kalim.

In: Athens Journal of Business & Economics, 21.05.2019.

Research output: Contribution to journalArticle

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