The Dollar versus the Euro

Triple Crisis blogger Matias Vernengo published the following working paper for the Levy Economics Institute of Bard College on why the dollar is not currently threatened as the dominant international currency.

Hegemonic Currencies during the Crisis: The Dollar versus the Euro in a Cartalist Perspective

Conventional wisdom has suggested that the US dollar is on the verge of loosing its hegemonic position in international monetary markets at least since the 1960s with the seminal work of  Robert Triffin. In fact, many authors believe that the collapse of the Bretton Woods system was  the proof of the weakness of the dollar. The creation of the euro in 1999, and to a lesser extent the spectacular rise of China, consolidated the view that the dollar’s days as the key international reserve currency were numbered.

Read the full working paper at the Levy Economics Institute of Bard College.