Title

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

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Full-text Version

Publisher’s Version

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.