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The impact on the U.S. Dollar of the conflict between the American locomotive’s model and the emerging economies’ autopoietic growth


  • Carlo Viviani

    (LUISS 'Guido Carli' University, Roma, Italy)

  • Paolo Savona

    (LUISS 'Guido Carli' University, Roma, Italy)


The purpose of this paper is to put the future of the US dollar into a logical framework which comprises the global development mechanism. Two models of growth collide: the US «locomotive», based on the international use of the dollar, and which requires exogenous pushes coming permanently from the foreign deficit and periodically from the public deficit, and the «endogenous», or «autopoietic». The engine of autopoietic growth is the process of globalization, alimented by foreign investments and the emerging economies’ domestic demand, which in turn require the establishment of an international monetary standard. In absence of a real international cooperation, the conflict of the two models might bring a global currency crisis and a fall in the global growth rate, with a possible negative impact in foreign relations and policies at the global level.

Suggested Citation

  • Carlo Viviani & Paolo Savona, 2005. "The impact on the U.S. Dollar of the conflict between the American locomotive’s model and the emerging economies’ autopoietic growth," International Finance 0504009, EconWPA.
  • Handle: RePEc:wpa:wuwpif:0504009
    Note: Type of Document - pdf; pages: 20

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    References listed on IDEAS

    1. Maurice Obstfeld & Kenneth Rogoff, 2007. "The Unsustainable U.S. Current Account Position Revisited," NBER Chapters,in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 339-376 National Bureau of Economic Research, Inc.
    2. John Williamson, 2004. "The future of the global financial system," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(4), pages 607-611.
    3. Nouriel Roubini & Brad Setser, 2005. "Will the Bretton Woods 2 regime unravel soon? the risk of a hard landing in 2005-2006," Proceedings, Federal Reserve Bank of San Francisco, issue Feb.
    4. Jane D'Arista, 2004. "Dollars, debt, and dependence: the case for international monetary reform," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(4), pages 557-572.
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    More about this item


    International monetary system; Dollar; Euro; Exchange rate; Economic growth; International Finance; International Political Economy.;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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