Currency Hegemony as a Tool of US Global Dominance

Abstract

Subject. The formation of new centers of global influence predetermines corresponding changes in the global balance of power. At the same time, the lack of real reforms of the global monetary system allows the United States to continue to set the rules of the game in the global economy, despite its increasing crisis potential. In this regard, there is a need to identify the driving forces capable of producing constructive changes in the global monetary order. Objective. A summary of the practice of using the US dollar to suppress global competition and maintain American superiority in international economic relations. Results. The control of the international monetary sphere by the country — hegemon of the world economy can be traced at all stages of the development of international economic relations (IER). Currently, the hegemonic country’s self-interest from issuing international liquidity, with non-resistance to such a policy on the part of all other IER participants, hinders the development of effective anti-crisis measures and worsens the general condition of the world economy. Scattered attempts to overcome the failures of global currency regulation at the local level (including through the use of digital technologies) seem to be ineffective, since they are not systemic in nature. Conclusions. A qualitative reform of the global monetary system is impossible without combining the efforts of the world’s largest economies to counter the destructive policies of the country that issues key international liquidity. Otherwise, the costs of financial crises become an insurmountable obstacle to the global economy entering a path of sustainable development.

Keywords

• international liquidity
• reserve asset
• foreign debt
• currency standard
• purchasing power
• international price benchmark
• currency wars
• digital currencies