| The Future of the Dollar
Cooper, Richard N.
Peterson Institute for International Economics, September 2009, online edition, 6p
The global financial and economic crisis and prospects for large and sustained budget deficits in the United States have prompted countries with massive dollar holdings such as China to consider alternatives to the US dollar. These countries realize that they would suffer losses if inflation eroded the value of the dollar securities they own. Are there feasible alternatives to the US dollar as a widely used international currency? Richard Cooper looks at possible alternatives—major currencies in use, such as the euro, the yen, the pound, or even the Chinese renminbi, and a synthetic currency such as the special drawing rights of the International Monetary Fund—and concludes that no other currency seems likely to overtake the US dollar, and it is likely to remain the dominant international currency for a long time.
Richard N. Cooper has been the Maurits C. Boas Professor of International
Economics at Harvard University since 1981 and is chairman emeritus of
the Advisory Committee of the Peterson Institute for International Economics.
Go to the article at:
http://www.iie.com/publications/pb/pb09-21.pdf
B8/04-09 - Posted November 6, 2009
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