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Continuities and Change in IPE at the Start of the Twenty-first Century Read chapter Read first chapter

2019 | OriginalPaper | Chapter

17. The IPE of International Currency Leadership

Author : Mattias Vermeiren

Published in: The Palgrave Handbook of Contemporary International Political Economy

Publisher: Palgrave Macmillan UK

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Abstract

This chapter reviews the sources and implications of international currency leadership by drawing lessons from the global financial crisis. The US dollar remains the world’s top currency because the United States continues to be the largest supplier of ‘safe assets’ in the global economy. Relatively accommodative macroeconomic policies and institutions in the United States have underpinned this role. At the same time, being the world’s predominant safe asset provider came at the expense of a ballooning deficit on the US external balance sheet after the crisis. However, there are no indications that the deterioration in the US external balance sheet has constrained the structural capacity of the United States to avoid the burden of macroeconomic adjustment—which remains the ultimate yardstick of international monetary power.

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Metadata
Title
The IPE of International Currency Leadership
Author
Mattias Vermeiren
Copyright Year
2019
Book
The Palgrave Handbook of Contemporary International Political Economy

Print ISBN: 978-1-137-45442-3

Electronic ISBN: 978-1-137-45443-0

Copyright Year: 2019

DOI
https://doi.org/10.1057/978-1-137-45443-0_17