From a just-published article in Foreign Affairs:

The story of the dollar is, ultimately, less about the United States’ strength than about the rest of the world’s weaknesses. Until that disparity changes, and seemingly no matter how badly the United States plays its cards, don’t expect the dollar to decline.

A summary graph:

Eswar Prasad also wrote “The Dollar Trap”, as well as 2022 Finance & Development article. Also, re: digital currencies etc., see “The Future of Money”.

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

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