Trump’s assault on the global dollar

While outsiders might wish to diversify away from the dollar, they lack a compelling alternative. 

So, what, if anything, might replace its hegemony?

In his work on the international system, Charles Kindleberger argued that the stability of an open world economy depended on 

the existence of a hegemonic power willing and able to provide essential public goods: open markets for trade; a stable money; and a lender of last resort in a crisis. 

The Eurozone is fragmented, because it is not a political union, but rather a club of sovereign states. 

Martin Wolf Financial Times 20 May 2025

https://www.ft.com/content/d9656820-0b3e-46e7-97c9-b6684d558776


Charles Kindleberger taught us that global stability relies of the hegemon’s willingness and ability to lead. 

His main lesson in The World in Depression, 1929-1939, draws from the devastating implications of the missing hegemon in 1930s — “no longer London, not yet New York” 

https://englundmacro.blogspot.com/2025/04/us-central-banks-swap-lines-have-helped.html

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