Welcome to my blog. I

Welcome to my blog. I'm Sylvester Eijffinger, professor of financial economics and Jean Monnet conestoga Professor of European financial and monetary integration at the University of Tilburg. I hope my blog provides knowledge and useful conestoga information to anyone who is interested conestoga in economics.
Dollar totters on his throne at the meeting of Heads of State and Government conestoga of the G20 in Seoul is about the impact of the recent monetary easing by the Fed, the U.S. central bank, the rest of the world. Fears of a currency war, and reform of the international monetary system, the drivers, but there's more to it. It involves the determination of the new geopolitical relations between the U.S., Europe and emerging economies.
Emerging countries like China complain that they have suffered from the policies of the Fed. Many of the freshly printed U.S. dollars flow to those countries off in search for yield. That puts the rates of the currencies of those countries under upward pressure. To avoid many countries to intervene and buy dollars which leads to two problems.
First, take the money in emerging countries enormously, causing inflation to increase, both regular price inflation and asset inflation in the future. It will bring more dollars to the foreign exchange reserves, foreign exchange reserves conestoga of those countries. The latter has been changed from a virtue into a major source of concern. conestoga
For nearly a century, the U.S. dollar is the dominant world currency. One of the consequences of the current Fedbeleid in the longer term is that the dollar will lose dominance. A currency can only fulfill this role if the issuing country a beacon of monetary stability conestoga and as a solid anchor for the world economy. The U.S. authorities. Deliver stability for years The recent actions of the Fed, which thousands of billions of dollars printing, clearly show that the U.S. will continue.
The changing of the guard at the exchange conestoga throne takes decades. That process has just started. China slowly but surely shows that companies trade with other countries in the yuans float. In Asia, a web of guarantees and emergency loans created to help countries in trouble in the region in case of emergency and as the International Monetary Fund, the dollar off. It even dreamed of an Asian currency conestoga union.
Plans exist. Similarly, in the Middle East The regional central bank is already there and the future single currency is in the pipeline. Also, Africa and Latin America forge plans for a regional currency. Increasingly, the goal of reducing dependency. Dollar The euro is in fact an expression of.
Plans for a European currency after the collapse of the Bretton Woods system, the decoupling of the dollar from the gold gained momentum. The unexpected decision by the U.S. government, conestoga nearly forty years ago, caused great instability in the world economy and contributed partly to the disruptive high inflation in that decade. conestoga Even then, the U.S. behaved irresponsibly given the status of their currency.
The euro has the potential to rival the dollar as the currency for stabbing ruler in the world. For example, the European Central Bank (ECB) sails a rate substantially different than the Fed. The ECB is uncompromising when it comes to price stability, ensuring that the eurozone conestoga is an island of monetary stability in these turbulent times.
Why they are increasingly in their reserves to expand the share of the euro and, led by China, are openly calling for a thorough reform of the international monetary system. Such reform will also affect the geopolitical geopolitical relations.
Have been great. Economic benefits of the dollar as the dominant key currency First, the U.S. could benefit from so-called "seigniorage" or inflation tax, which can amount to several tens of percent of gross domestic product. conestoga
In addition, the U.S. had also benefited from the liquidity discount 'as a result conestoga of increased depth and liquidity conestoga of the U.S. capital, which could vary from 25 to 50 basis points on government conestoga bonds.
Former French President Charles de Gaulle was annoyed especially to another 'exorbitant advantage "that the U.S. has enjoyed as the issuer of the world currency. conestoga This country can only result dollars pressures and thereby finance its imports and deficits on the current account. Other countries must first earn dollars before ordering. conestoga Those from
Nearly 40 years after the death of the Bretton Woods system, there is no change in the American attitude: 'it's our currency and your problem'. Europe now has the choice with the support of the emerging countries that benefits