The Dollar’s Exorbitant Privilege
The US dollar's preeminence in the world economy is being questioned due to President Donald Trump's actions in international relations. The administration's policies, including trade barriers and financial interventions, may undermine the dollar's dominance, and the lack of plausible alternative currencies may not be enough to defend it. The world economy has organized itself around the dollar for decades and, contrary to numerous failed predictions, this isn’t about to change. Trump’s all-fronts assault on business as usual in international relations has cast things in a different light. Sometimes, the unthinkable happens. Two books published this year delve into the history of the dominant dollar: Our Dollar, Your Problem by Kenneth Rogoff of Harvard University, https://yalebooks.yale.edu/book/9780300275315/our-dollar-your-problem/ and King Dollar by Paul Blustein, https://yalebooks.yale.edu/book/9780300270969/king-dollar/ a journalist who’s spent many years coverin...