King Dollar’s Shaky Throne and Fall

The shaky US dollar – which is usually seen as a safe haven – could create financial instability, warns the Riksbank. – There is reason…

The shaky US dollar – which is usually seen as a safe haven – could create financial instability, warns the Riksbank. “There is reason to keep an eye on this,” says Erik Thedéen.

King Dollar’s shaky throne and fall

In a world where many currencies circulate, one of them invariably comes out on top. Great prestige accrues to the country that issues the dominant currency. The issuer enjoys other advantages besides, such as the ability to borrow at lower interest rates, and weaker constraints on how much it can borrow. Financial activity is drawn to the home of the international monetary standard, providing jobs and incomes for bankers and providers of other …