Dollar Dilemma

An examination of the role of the dollar in the global financial system which presents a long-term historical perspective on the international monetary system in this century. The main focus is on the evaluation of the global financial system in the post-war period.

*

An examination of the role of the dollar in the global financial system which presents a long-term historical perspective on the international monetary system in this century. The main focus is on the evaluation of the global financial system in the post-war period.

Join Zac on an adventure as he discovers the value of a dollar and explores what he can do with the dollar he earned. Meet Zac's friends- Spencer the Spender, Savannah the Saver, Phillip the Philanthropist, and Ina the Investor. Learn to do it all- spend, save, give and invest.

The U.S. dollar serves both as the domestic currency of the United States and as the dominant international currency for trade, settlement, and reserve purposes. The dollar's international status provides significant benefits for the United States, but one aspect of the global dollar system as it currently operates is inherently destabilizing: offshore entities, outside the ambit of U.S. supervision and regulation, routinely issue short-term dollar-denominated liabilities--“money claims”--in ways that make them vulnerable to runs and panics. I argue in this article that there are compelling reasons for U.S. monetary authorities to try to reassert control over this activity, but that there are practical limits to their ability to do so if the dollar is to maintain its role as the dominant international currency. The trade-offs involved in balancing dollar dominance against control and stability can be managed but not entirely resolved, creating a dilemma for U.S. monetary policy. This article provides a comprehensive analysis of this dilemma and assesses possible policy reforms in light of the tensions it creates.

So when over $20 million falls into her lap, Cassia Carr views her Midas touch as a cross, not a blessing—and certainly doesn’t anticipate the difficulty of giving it all away! And it’s hard enough to gauge romantic feelings without the chaos of a major windfall. Her globetrotting neighbor, Adam Cavanaugh, seems interested—but in Cassia or her fortune? When Adam abruptly disappears, should Cassia forget him or follow her heart to an unknown, life-changing destination?