Global Conference 2011
Is the U.S. Dollar Losing Its Edge?
Tuesday, May 3, 2011 / 2:30 pm - 3:45 pm
In the Bretton Woods system (post-1946), the dollar was the benchmark to which other world currencies linked. The global monetary system was adrift when the dollar's link with gold was cut in August 1971, but the greenback still had no serious competitor until the euro arrived in 1999. The European debt crisis has created doubts about the euro's viability in its present form, and the Fed's QE programs have hastened the search for an alternative to the dollar. Since there is no other easy choice, will the Brazils and Chinas of the world resort, instead, to steps that would lead to a trade or currency war? If the dollar has to lose its global reserve currency status, can the process occur in a benign fashion with minimal disturbance to the global trading system?