That’s the title I gave for an essay published in the Nikkei today:

[Link to article]

Here’s the text in English:

Every decade, the debate over the dollar’s role as the world’s premier currency returns: will America’s currency be dethroned by another country’s? In the 1970’s, it was the Japanese yen or the Deutsche mark. Then with Economic and Monetary Union, the euro was viewed as a contender. In the last decade,  the renminbi took up the role as possible aspirant. Where do we stand in 2022?

Before answering that question, it’s important to remember that the one that thing has proven true over the past forty years is the durability of the dollar’s primacy, as shown in Figure 1 — through the global financial crisis, and through the covid pandemic. The dollar remains the primary currency in the holdings of central banks around the world. While there is

Keep reading this article on Econbrowser Blog - James Hamilton & Menzie Chinn.

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