Jump to ContentJump to Main Navigation
Sustainable SecurityRethinking American National Security Strategy$
Users without a subscription are not able to see the full content.

Jeremi Suri and Benjamin Valentino

Print publication date: 2016

Print ISBN-13: 9780190611477

Published to Oxford Scholarship Online: December 2016

DOI: 10.1093/acprof:oso/9780190611477.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 08 March 2021

Dollar Diminution and New Macroeconomic Constraints on American Power

Dollar Diminution and New Macroeconomic Constraints on American Power

(p.21) 1 Dollar Diminution and New Macroeconomic Constraints on American Power
Sustainable Security

Jonathan Kirshner

Oxford University Press

This chapter briefly explains how the global financial crisis of 2007–2008 and its aftermath revealed underappreciated vulnerabilities in the US economy. These led to disenchantment with the American financial model and its global economic leadership. One consequence of this will be to put pressure on the dollar's global role. The chapter discusses two distinct effects felt by states managing international currencies in relative decline: (1) the loss of the benefits associated with issuing international money, and (2) the challenges of issuing a currency experiencing a contraction in global use. The principal consequences of international currency diminution (in general and for US power) include pressure on defense spending, reduced macroeconomic autonomy (and thus the ability to finance ambitious foreign policies), vulnerability to currency manipulation, and greater exposure to debilitating financial distress, especially during international political crises.

Keywords:   Global financial crisis, American financial model, international currency diminution, defense spending, currency manipulation, the dollar

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .