Monday, February 13, 2012

The Economy: "So, are we entering a post-dollar world?"

From Project Syndicate

"Three things should be clear from this history. First, a global monetary system based on precious metals does not resolve the fundamental imbalances of a global economic system. Second, precious metals do not resolve the problem of inflation. And, finally, the anchor currency and the underlying eco-system of world trade often outlive the geopolitical decline of the anchor country by decades." ~ Sanjeev Sanyal
←Picture compiled by Norman E. Hooben

The Dollar’s Long Tail
NEW DELHI – The ongoing economic crisis and the persistent deficits of the United States have increasingly called into question the dollar’s role as the world’s anchor currency. Recent moves to internationalize China’s renminbi have led to anticipation of a looming shift in the global monetary system. Many prominent economists, including the members of a United Nations panel headed by the Nobel laureate economist Joseph Stiglitz, are recommending a “Global Reserve System” to replace the dollar’s hegemony. But the long history of global anchor currencies suggests that the dollar’s days on top may be far from over...continues here

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