POLI 445 Lecture 22: Rival Currencies in the Future
30 Jan 2018
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Document Summary
Learning from the past: emergence of key currencies that may challenge the usd. Its very hard to force your currency on to others: this is possible if you have political control over a country, but otherwise this won"t work. Japan in the 1970s/1980s: tried to discourage foreigners from holding japanese yen as an intl currency, us, took great pains to make sure dollars were leaving the us for intl use. Frieden: analytical liberal: stability (internally, e(cid:454)ter(cid:374)all(cid:455)) sour(cid:272)e of (cid:272)o(cid:374)fide(cid:374)(cid:272)e. Pou(cid:374)d to gai(cid:374) (cid:272)o(cid:374)fide(cid:374)(cid:272)e o(cid:448)er ti(cid:373)e e(cid:455)e (cid:449)as to sta(cid:271)ilizi(cid:374)g and increasing outside confidence in the pound. Stabilizing trade, in that sense (to encourage greater uk exports: britain"s role in international investment (complemented by britain"s position in trade in the. Possible rival to the us dollar: the euro. Institutions running monetary policy give confidence to currency"s value (ecb - european central. Bank: the ecb was given a clear mandate when it was created to be like the bundesbank:
