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The Exorbitant Burden, The Impact of the U.S. Dollar's Reserve and Global Currency Status on the U.S. Twin-Deficits


The Exorbitant Burden, The Impact of the U.S. Dollar's Reserve and Global Currency Status on the U.S. Twin-Deficits.

Authors:

Dr Taranza T Ganziro, African Markets Institute, USA
Dr Robert G Vambery, Pace University, USA

Synopsis:

This economic and political science work is a rigorous analysis that demonstrates that although it is a privilege and a benefit for the US to have its currency, the dollar, as the leading world reserve currency, the privilege also proves to be a very significant economic and security burden imposed on the nation. But has the role of the dollar as a global currency and an international reserve asset actually rewarded the United States with an exorbitant privilege?

This book focuses on the opposite end of exorbitant privilege spectrum: the exorbitant burden, the cost the very dollar reserve status impacts on the U.S. economy through the twin deficits. This economic and political science work is a rigorous quantitative analysis that demonstrates that although it is a privilege and a benefit for the US to have its currency, the dollar, as the leading world reserve currency, the privilege also proves to be a very significant economic and security burden imposed on the nation.

Brief Table of Contents:

CHAPTER 1 Introduction
CHAPTER 2 Literature Review
2.1. Theory of Reserve Currency
2.2. Reserve Currency Historical Background
2.3. US Dollar Global Liquidity
CHAPTER 3 Theoretical Framework
3.1. Overview
3.2. Great Powers Have Great Currencies
3.3. The Paradox of the U.S. Dollar
3.4. US Dollar and Global Imbalances
3.5. Exorbitant Privilege
3.6. Exorbitant Burden
3.7. Currency Wars
3.8. Is There a Viable Alternative to the US Dollar as the World Leading Reserve Currency?
CHAPTER 4 Methodology
4.1. Model Specification
4.2. Quantitative Analysis
CHAPTER 5 Conclusion
Appendices
References
Index

Book Information

ISBN Print: 9781785606410
ISBN Electronic: 9781785606403
Publication Date: 06 January 2016
Format print: Hardback
Page count: 338
Dimensions: 152 x 229

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Motivation

Dr. Vambery

Dr. Vambery was motivated and very excited about this book because of his decades' long interest and research into issues of balance of trade deficits, large scale international loans and debt defaults, budget deficits and the impact of these on growing national debts and on exchange rate valuations.
Dr. Ganziro
For Dr. Ganziro it was rather his inquisitive mind through real-life experience. For his very first trip to Europe back in the 1980s, he had to apply to the National Bank of Rwanda for foreign exchange for the trip. He was given - not Rwandan, or Belgian, or French francs - but US dollars. In his more recent trip to Tanzania back in 2008, he had some euros, but no restaurant or Forex Bureau could exchange them against Tanzanian shillings. Each time he was told that he had to bring US dollars. To Dr. Ganziro, the conclusion was clear: the US dollar is King, at least in Africa.

 

Additional material

    Click here to read Spain, Scary Statistics, and Why the U.S. Dollar Remains the World's Reserve Currency (via HBR.org)