US debt, deficit, and the falling greenback : does it mean currency wars and an end to the dollar's reign?
Document Type
Journal article
Source Publication
SERI Quarterly
Publication Date
7-1-2011
Volume
4
Issue
3
First Page
67
Last Page
78
Keywords
US Treasury securities, international reserve currency, international trade, Special Drawing Rights (SDRs)
Abstract
The United States' exploding debt and deficits have raised concerns about the future of the dollar. Are the days of the dollar as the world's reserve currency numbered? If this is the case, what will replace the dollar? More ominously, is the world entering a new era of "currency wars" - where each nation resorts to a "beggar-thy-neighbor" strategy of intervening in exchange rates to capture market share from competitors? The following paper argues that despite challenges to the US economy, the immediate future of the dollar is secure-in part, because there is no alternative on the horizon. However, currency manipulation and competitive devaluation is a growing problem, potentially resulting in low-level trade conflicts that could derail the global economic recovery.
Print ISSN
19767250
Publisher Statement
Copyright © Samsung Economic Research Institute 2011
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Sharma, S. D. (2011). US debt, deficit, and the falling greenback: Does it mean currency wars and an end to the dollar's reign? SERI Quarterly, 4(3), 67-78.