The Future Of The Us Dollar

The U.S. dollar peaked in value in 2000-2001 and has been in a significant decline ever since. There was a relatively brief period in 2008 when the dollar rebounded quite sharply due to the worldwide financial crisis and economic meltdown, when there was a global rush to the safety of U.S. treasury securities. But since then, the dollar has resumed its long-term downtrend. In the recent years the dollar has been improving relative to other currencies, becausee of the decline in those other currencies.

The financial crisis of 2008 has been described as the worst financial crisis the world has seen since the great depression, but there are now murmurings of the potential for an even greater financial crisis, a currency crisis, caused by the demise of the US Dollar. The Dollar has been the reserve currency of the world since it took over from the Pound at the end of world war two, but we examine if it is about to crash spectacularly?

The value of U.S dollar declined as the need for goods dropped. According to L. Diane Barnes and Mark D. Bowles, “Too much of the nation’s economy depended on too few industries, including steel production and automobiles”

The United States is a powerful country with a powerful economy. It has a huge presence in the international market and this is due primarily to its exorbitant privilege. Exorbitant privilege is the benefit that the US is able to enjoy due to the dollar’s status as the currency used for international reserves. Many economists have criticized this privilege of the US, including Barry Eichengreen. Eichengreen presents the argument that the dollar should not be the only currency that is used in the International Monetary System (IMS) and that despite its history, it no longer has a reason to be the only currency in the global economy, believing that the IMS would benefit from having multiple international currencies. He argues this by presenting the history of the economies throughout the world that have led to this point. His presents his argument in his book Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System.

Although they are such small slips of paper and lumps of metal, they are highly valued in the eyes of society. In the United States and all around the world, money plays a powerful role in the lives of many. Nevertheless, money comes in many different forms: the European euro, the Indian rupee, the Chinese yuan, the Swiss franc, and the list continues on. Of course, in America, the United States dollar is most often used. As a major form of currency, the United States dollar can be used to purchase nearly anything as long as the buyer has enough of it. Ever since 1862, “greenbacks” have been used as legal tender in this country (“From the Colonies”), but coins have been officially part of the country’s monetary system since the Coinage Act

After the 2008 market crash the exchange rate between the US Dollar and the Euro has been increasing. While the Euro continues to gain value, the US Dollar has yet to fully recover the value it had before the market crash. As seen in figure 7 it costs more US dollars to buy 1 Euro than it has in the past two years. Figure 8 shows that the US dollar has depreciated against the Euro but has appreciated against the Pound Sterling, the Australian dollar, and the Canadian dollar.

Despite its impressive size, the strength of the US economy is currently shaking as a result of the economic crisis commenced in 2007. Whereas the country only entered recession in 2008, the economic crisis has in fact revealed some problems that already existed within the country, such as unstable and insufficient financial policies, dangerous lending practices or insufficient fiscal regulations. The recession however deepened as the country witnessed the burst of the real estate bubble, the deflating property prices, the failures of investment banks and the contraction of credit

Behind the global power of the U.S. dollar, hides the most significant form of currency you 've probably never heard of, the Petrodollar. The word “Petrodollar” was coined by the Egyptian economist Ibrahim Oweiss, as a way to describe how oil producing and exporting countries were accounting for oil units outside of the regular money supply. While the Petrodollar may not be a commonly used term, I would agree with Economist Jerry Robinson when describing it as, "the most brilliant [series of] political-economic moves in recent history… [being] the fabric that holds our [U.S.] economy together”. As the major cornerstone for the U.S.’S economic prosperity and international hegemony, following the change of the Bretton Woods System to the Petrodollar system in 1971, I have found the largest independent factor to influence American international interests has been the implementation and preservation of the Petrodollar.

Because America has the world’s largest economy, every economic move that the US makes has immediate effects on the global markets. At the moment, there's speculation, worldwide, about whether or not the US is about to raise interest rates and with all indicators pointing to a rate increase, there are concerns about ripple effects throughout the rest of the world.

Will the U.S. dollar remain the essential world money of decision, as University of Chicago scholastic and speculative stock investments administrator Christian Broda accepts? On the other hand is the U.S. dollar in peril of losing its status as the world store money of economic ruling to another form of the "almighty dollar" and with it the world's monetary pioneer could say adios to "exaggerated" fiscal benefits to pile on notable high government unpaid liability levels and take part in at no other time seen quantitative facilitating experimentation?

Let's start our journey from 2001 when George bush was the president and We suffered the shock of 911. The biggest tragedy in the history of US which took US economic from a surplus to the deficit and then can the Iraq war followed by the war on terrorism , all this commutative and unpredictable events put the US economic in an anemic state.Bush tax cut and lower interest rates was the policies to jump start the economy. Consumer confidence improved ,the stock market showed signs of stability, the housing market started to boom and everyone felt economically richer all leading to

The objective of this paper is to give a clearer picture to how the U.S dollar became the world 's most dominant reserve currency . Several countries use it as their official currency, and many others use it as the de facto currency . Moreover, American dollar is the primary reserve currency, which is used as the standard unit in international market for commodities such as gold and petroleum. However, the dollar has been declining over the last three decades; in fact it has lost almost half its value against other major currencies. The purpose of this research is to bring clarity for the following questions: How, when and why the dollar became the world’s reserve currency? Benefits of having the largest world reserve currency? Comparing the dollar with the pound and the up and rising Chinese Renminbi (RMB), and predictions for the future.

It is said that when the US sneezes the world gets a cold. This was valid before however the world has begun to imagine that it can decouple itself from the US economy. Here the umbilical string is the US dollar; once that is cut, gradually yet without a doubt the decoupling will happen; with desperate outcomes for the US. As I specified some time recently, effectively some essential oil delivering countries have chosen to desert the dollar. Others have chosen to de-peg their monetary standards. Others, for example, China have begun considering decreasing their stores in dollars. When others start to do likewise the dollar will stop to be the global save and exchange cash of decision. In the interim, real exchanging accomplices need to

According to Campbell (2011), bitcoin is a form of digital currency, created and held electronics with no one to control it. It is the first demoralization peer to peer payment network with digital currency without any associating with any banking institution, any nation, or any centralized source of origin. Bitcoins are described as the "digital coins” that can sent through the internet. They are created as a reward for payment processing work in which users offer their computing power. It is to verify and record payments into the public ledger. Bitcoin can be used for buying and selling products or service where they also can be exchange for fiat money. On the whole, the bitcoins prices are set up by the market demand and supply. All the bitcoins and users have their own unique identity and each transaction is recorded in a public ledger according to European Parliamentary Research Service, 2014. This public ledger acts as a digital financial record book with a record of all Bitcoin transactions in chronological order. Users can use bitcoins network by downloading the free and open source software. It has a publicly available control code. By buying bitcoins with conventional money on one of the exchange platforms, users

The global financial crisis has found problems of the world economy and identified disadvantages in the current monetary system. Status of the US dollar as key currency has been challenged and nowadays there is a discussion of how new system should be looked like. Economists, policymakers and non-governmental organizations have made new suggestions. The paper provides an overview of some proposals that were offered.