Why the Dollar Will Dominate

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How The West Was One

 

Bretton Woods, the original set of international currency arrangements devised in 1944 and integral to the International Liberal Order, remains largely intact. There was no Bretton Woods II, and there will be no Bretton Woods III as some claim. Bretton Woods is wrongly seen as an accounting system with units fixed to the US dollar, whereas, in practice, it underpins a global funding system, based around the US dollar, that allows capital to circulate Worldwide. We argue here that the system is likely to become less elastic, not because of the rise of rival units, but from tighter US controls as new loans are directed towards ‘friends’ and away from ‘foes’. In fact, much like its 1960s heyday when The West faced-off ‘The Rest’.

 

 

 

See our latest published research, Global View – How The West Was One - April 2022

 

 

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