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The Demise of the Dollar?

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  • Cohen, Benjamin J.

Abstract

The aim of this article is to explain why, despite decades of doubts, the US dollar remains the world’s top currency, and more importantly, why it is likely to remain on top for years more to come. I argue that the dollar is the indispensable currency: the one money that the world cannot do without. The dollar offers unique advantages that are unmatched by any other currency. The essay begins with a review of the attributes that are most essential to the international status of a currency. Only the dollar embodies the full list of attributes that make a currency internationally competitive. The euro and renminbi, by contrast, are seriously lacking in one or more respects. For the foreseeable future the greenback will remain dominant, as it has done for decades.

Suggested Citation

  • Cohen, Benjamin J., 2015. "The Demise of the Dollar?," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 18.
    • Handle: RePEc:rvr:journl:2015:11501
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    References listed on IDEAS

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    Cited by:

    1. Ahmed, Pepita Ould & Ponsot, Jean-François, 2015. "Contestations monétaires : une économie politique de la monnaie," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 18.
    2. John JA Burke, 2024. "De-Dollarization," Academicus International Scientific Journal, Entrepreneurship Training Center Albania, issue 30, pages 98-111, July.
    3. Jeremy Srouji, 2021. "Why is World Money World Money? A View from the Functions of Money," GREDEG Working Papers 2021-44, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Seghezza, Elena & Morelli, Pierluigi, 2018. "Rule of law and balance of power sustain US dollar preeminence," Journal of Policy Modeling, Elsevier, vol. 40(1), pages 16-36.
    5. Ponsot, Jean-François, 2016. "The “four I's” of the international monetary system and the international role of the euro," Research in International Business and Finance, Elsevier, vol. 37(C), pages 299-308.
    6. Jeremy Srouji, 2022. "Reframing The US Dollar Debate: What Outlook for the US Dollar as World Money?," GREDEG Working Papers 2022-06, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-

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