Don't bank on US dollar's demise

The US dollar's putative rivals are going nowhere fast

I have an op-ed in the AFR arguing that the perennial predictions of the US dollar’s demise reflect a fundamental misunderstanding of the sources of its dominant role in the world economy. The US dollar’s advantages are not easily replicated by putative rivals.

IMF chief economist Gita Gopinath writing in the FT yesterday noted that those looking for a digital fix to the supposed problem of US dollar hegemony were also ignoring the fundamental basis of the US dollar’s dominant role. A multilateral digital currency would also clash with the independence of domestic monetary policy.

ICYMI, I was also in the AFR yesterday responding to Stephanie Kelton’s advocacy of MMT in Australia. She will be giving the Harcourt Lecture at the University of Adelaide next week.