Research On The Crisis Of The Dollar Standard System From The Perspective Of Monetary Power

From a currency power perspective,this dissertation explores the origin and forces that drive the current international monetary system,i.e.“the dollar standard” towards the verge of crisis.Both classic symptoms of international currency crisis could be observed from the dollar standard: the dollar as the standard currency witnesses weakening value and monetary power,while other international currencies emerge as alternative options.The law of growth and decline determines that the dollar standard is moving towards the tipping point of collapse as its predecessors in the history.The institutional defects of the dollar standard keep on eroding the value basis of the standard currency.As the international monetary system enables U.S.to finance extraordinarily large current account deficits with credit instead of gold,the “double deficits” are internalized as public responsibilities,which evolve into a new version of “Triffin dilemma” that will eventually cause a credit crisis and system failure.Further on,as financial disembeddedness since 1990 s enlarges the dollar’s power to extreme extent,it also restructures U.S.economy into more fictitious mode and harms the sustainable growth of real economy.The innate flaws of the dollar standard also generate heterogeneous thoughts,and prompt the emergence of other international currencies.The dual functions of the dollar as both sovereign currency and a public service tool,and the absence of power limitations,inevitably cause the abuse of currency power and derived problems such as global trade imbalance,hyperinflation of asset prices,economic hollowing out,frequent outbreak of financial crises,declining value of dollar reserves etc.Driven by the urges to protect national currency power and offset the adverse impact of the dollar system,other countries explore various modes of regional currency cooperation as represented by the super-sovereign currency Euro and the multilateral currency cooperation in Asia.In this respect,the dollar standard is already undergoing structural changes while more international currencies step in to share the currency power.The dollar standard crisis takes roots in the original design of the international currency system since it came into existence decades ago,and was brewing as the system enters the vicious circle with deteriorating situations.It is a noteworthy topic for in-depth and consistent research work,as currency power takes the place of other factors to be the core area of international relations.