IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2025i68p243-268.html

After the dollar

Author

Listed:
  • Voronov, Yu.

    (Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences, Novosibirsk, Russia)

  • Gluschenko, K.

    (Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences, Novosibirsk, Russia)

Abstract

Because of significant involvement of Russia in international trade, the elaboration of the country's development prospects should necessarily take into account possible directions of the international monetary system transformation. This paper analyzes these directions. The analysis is preceded by a description of the past and present of the international monetary system. Firstly, it traces the path of the US dollar from an unauthorized peripheral currency to the dominant currency in the monetary system. Secondly, it shows the consequences of this, namely, the "exorbitant privilege" of the US that allows the US to live off the rest of the world, paying it back with unsecured dollars. The spectrum of ways to transform the international monetary system is considered. This is not an attempt of forecast, but an analysis of potential scenarios with assessments of the feasibility of their realization. One end of the spectrum is the creation of a single supranational currency based on the transformation of the special drawing rights (SDR). The other end is the disintegration of the single currency system, which is partly already underway. In between is a return to the gold standard and the displacement of the US dollar by renminbi. However, an unpredictable option due to digitalization of currencies is also possible.

Suggested Citation

  • Voronov, Yu. & Gluschenko, K., 2025. "After the dollar," Journal of the New Economic Association, New Economic Association, vol. 68(3), pages 243-268.
    • Handle: RePEc:nea:journl:y:2025:i:68:p:243-268
    DOI: 10.31737/22212264_2025_3_243-268
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2025-68-243-268r.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/22212264_2025_3_243-268?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael D. Bordo & Dominique Simard & Eugene N. White, 1995. "France and the Bretton Woods International Monetary System 1960 to 1968," Palgrave Macmillan Books, in: Jaime Reis (ed.), International Monetary Systems in Historical Perspective, chapter 7, pages 153-180, Palgrave Macmillan.
    2. Fordham, Benjamin O., 2007. "Revisionism Reconsidered: Exports and American Intervention in World War I," International Organization, Cambridge University Press, vol. 61(2), pages 277-310, April.
    3. Barry Eichengreen & Livia Chiţu & Arnaud Mehl, 2016. "Stability or Upheaval? The Currency Composition of International Reserves in the Long Run," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 64(2), pages 354-380, June.
    4. C'elestin Coquid'e & Jos'e Lages & Dima L. Shepelyansky, 2023. "Prospects of BRICS currency dominance in international trade," Papers 2305.00585, arXiv.org.
    5. Célestin Coquidé & José Lages & Dima Shepelyansky, 2023. "Prospects of BRICS currency dominance in international trade," Post-Print hal-04641803, HAL.
    6. E. Y. Vinokurov & M. V. Grichik, 2022. "New concept of international reserve assets: Security, diversification and nonconventional approaches," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 12.
    7. Marie Fare & Pepita Ould Ahmed, 2017. "Complementary currency systems and their ability to support economic and social changes," Post-Print halshs-01623361, HAL.
    8. Michael D. Bordo & Barry Eichengreen, 1993. "A Retrospective on the Bretton Woods System: Lessons for International Monetary Reform," NBER Books, National Bureau of Economic Research, Inc, number bord93-1, January.
    9. Arslanalp, Serkan & Eichengreen, Barry & Simpson-Bell, Chima, 2023. "Gold as international reserves: A barbarous relic no more?," Journal of International Economics, Elsevier, vol. 145(C).
    10. Bordo, Michael D, 1995. "Is There a Good Case for a New Bretton Woods International Monetary System?," American Economic Review, American Economic Association, vol. 85(2), pages 317-322, May.
    11. Michael D. Bordo & Fernando Teixeira Santos, 1995. "Portugal and the Bretton Woods International Monetary System," Palgrave Macmillan Books, in: Jaime Reis (ed.), International Monetary Systems in Historical Perspective, chapter 8, pages 181-208, Palgrave Macmillan.
    12. Eichengreen, Barry & Flandreau, Marc & Mehl, Arnaud & Chitu, Livia, 2017. "International Currencies Past, Present, and Future: Two Views from Economic History," OUP Catalogue, Oxford University Press, number 9780190659455.
    13. Pozo, Susan, 1984. "Composition and Variability of the SDR," The Review of Economics and Statistics, MIT Press, vol. 66(2), pages 308-314, May.
    14. Daniel R. Sanches, 2016. "The Free-Banking Era: A Lesson for Today?," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 1(3), pages 9-14, July.
    15. Eichengreen, Barry & Flandreau, Marc, 2009. "The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency?)," European Review of Economic History, Cambridge University Press, vol. 13(3), pages 377-411, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gluschenko, Konstantin & Voronov, Yuri, 2025. "The day after the dollar," MPRA Paper 125275, University Library of Munich, Germany.
    2. Corbet, Shaen & Larkin, Charles, 2022. "The effects of German economic and political progress on the Sparkassen savings bank system," Research in International Business and Finance, Elsevier, vol. 61(C).
    3. Bordo, Michael & Monnet, Eric & Naef, Alain, 2019. "The Gold Pool (1961–1968) and the Fall of the Bretton Woods System: Lessons for Central Bank Cooperation," The Journal of Economic History, Cambridge University Press, vol. 79(4), pages 1027-1059, December.
    4. Michael D. Bordo & Robert N. McCauley, 2019. "Triffin: Dilemma or Myth?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(4), pages 824-851, December.
    5. Yin-Wong Cheung, 2023. "A decade of RMB internationalisation," Economic and Political Studies, Taylor & Francis Journals, vol. 11(1), pages 47-74, January.
    6. Alan de Bromhead & David Jordan & Francis Kennedy & Jack Seddon, 2023. "Sterling's farewell symphony: The end of the Sterling Area revisited," Economic History Review, Economic History Society, vol. 76(2), pages 415-444, May.
    7. Delphine Lahet & Stéphanie Prat, 2023. "Local-currency debt and currency internationalization dynamics: A nonlinear framework," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 159(1), pages 215-254, February.
    8. António Portugal Duarte & Fátima Sol Murta & Nuno Baetas Silva, 2025. "Will the euro replace the U.S. dollar as the leading international currency? A volatility analysis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 15(1), pages 1-27, March.
    9. Kapoguzov, E., 2025. "International settlements of the BRICS countries: Currency and fi nancial alternatives," Journal of the New Economic Association, New Economic Association, vol. 68(3), pages 288-297.
    10. Olivier ACCOMINOTTI & Marie BRIERE & Aurore BURIETZ & Kim OOSTERLINCK & Ariane SZAFARZ, 2020. "Did Globalization Kill Contagion?," Working Papers 2020-ACF-01, IESEG School of Management.
    11. Flandreau, Marc, 2017. "Reputation, Regulation and the Collapse of International Capital Markets, 1920-1935," CEPR Discussion Papers 11747, Centre for Economic Policy Research.
    12. Barry Eichengreen & Domenico Lombardi, 2017. "RMBI or RMBR? Is the Renminbi Destined to Become a Global or Regional Currency?," Asian Economic Papers, MIT Press, vol. 16(1), pages 35-59, Winter/Sp.
    13. Bordo, Michael D. & Schwartz, Anna J., 1999. "Monetary policy regimes and economic performance: The historical record," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 3, pages 149-234, Elsevier.
    14. Lin, Justin Yifu & Fardoust, Shahrokh & Rosenblatt, David, 2012. "Reform of the international monetary system : a jagged history and uncertain prospects," Policy Research Working Paper Series 6070, The World Bank.
    15. Agustin S. Benetrix & Beren Demirolmez, 2025. "Mapping Global Debt: A New Measure of Currency Dominance and Uncertainty Shock Effects," Trinity Economics Papers tep0925, Trinity College Dublin, Department of Economics.
    16. Rockoff, Hugh & White, Eugene N., 2012. "Monetary Regimes and Policy on a Global Scale: The Oeuvre of Michael D. Bordo," MPRA Paper 49672, University Library of Munich, Germany, revised May 2013.
    17. François R. Velde, 2009. "Chronicle of a Deflation Unforetold," Journal of Political Economy, University of Chicago Press, vol. 117(4), pages 591-634, August.
    18. Lu, Dong & Qian, Xingwang & Zhu, Wenyu, 2024. "External debt currency denomination and the currency composition of foreign exchange reserves," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    19. Cohen, Joseph N., 2008. "Managing the Faustian bargain: monetary autonomy in the pursuit of development in Eastern Europe and Latin America," MPRA Paper 22435, University Library of Munich, Germany.
    20. Barry Eichengreen & Chitu Livia & Arnaud Mehl, 2014. "Stability or upheaval? The currency composition of international reserves in the long run," Globalization Institute Working Papers 201, Federal Reserve Bank of Dallas.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2025:i:68:p:243-268. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.