How Global Currencies Work: Past, Present, and Future

The book "How Global Currencies Work" challenges the conventional wisdom that the currency of the world's leading power dominates international trade and finance by demonstrating that several national monies can share international currency status and that their importance can change rapidly. It shows that multiple international and reserve currencies have coexisted in the past, upending the traditional view of the British pounds dominance before 1945 and the U.S. dollars postwar dominance.

Format: Paperback / softback
Length: 272 pages
Publication date: 26 February 2019
Publisher: Princeton University Press

A groundbreaking new perspective on the evolving trends of global currencies, including the remarkable rise of the Chinese yuan, emerges from the pages of "How Global Currencies Work." This insightful work challenges the prevailing notion that the currency of the world's dominant power invariably dominates international trade and finance. By presenting a comprehensive history of global finance spanning the past two centuries and utilizing extensive new data to test existing theories about the functioning of global currencies, the authors unveil a transformative perspective. They demonstrate that multiple national monies can attain international currency status and that their significance can undergo rapid fluctuations. Through their analysis, they unveil how technological advancements, international trade, and finance have reshaped the landscape of international currencies, enabling the coexistence of multiple international financial standards.

In a surprising revelation, the authors reveal that multiple international and reserve currencies have coexisted in the past, upending the traditional view of the British pounds' dominance before 1945 and the U.S. dollars' postwar dominance. Looking ahead, the book delves into the profound implications of this new framework for critical questions shaping the future of the international monetary system. It explores the potential impact of increased currency competition on global financial stability, raising important considerations for policymakers and stakeholders.

"How Global Currencies Work" is a seminal contribution to the field of economics, offering a fresh and thought-provoking perspective on the complex dynamics of global currencies. Through its meticulous research and insightful analysis, this book provides valuable insights into the past, present, and future of international finance, challenging our understanding of the global economic landscape. It is a must-read for economists, policymakers, and anyone interested in understanding the intricate interplay between currencies and global economic trends.

Weight: 430g
Dimension: 154 x 235 x 23 (mm)
ISBN-13: 9780691191867