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Title:Hegemonic currencies during the crisis: The dollar versus the euro in a cartalist perspective PDF Logo
Authors:Fields, David
Vernengo, Matías
Issue Date:2011
Series/Report no.:Working paper, Levy Economics Institute 666
Abstract:This paper suggests that the dollar is not threatened as the hegemonic international currency, and that most analysts are incapable of understanding the resilience of the dollar, not only because they ignore the theories of monetary hegemonic stability or what, more recently, has been termed the geography of money; but also as a result of an incomplete understanding of what a monetary hegemon does. The hegemon is not required to maintain credible macroeconomic policies (i.e., fiscally contractionary policies to maintain the value of the currency), but rather to provide an asset free of the risk of default. It is argued that the current crisis in Europe illustrates why the euro is not a real contender for hegemony in the near future.
Subjects:Dollar
Euro
international currency
JEL:F31
F33
F55
Document Type:Working Paper
Appears in Collections:Working Papers, Levy Economics Institute of Bard College

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