8/5/2023 0 Comments Conference hall ceiling design![]() ![]() "We have an important advantage, which may whittle away slowly if we're not careful," says economist Michael Boskin, a former White House advisor. in all kinds of way: For example, it means domestic businesses have a home court (home currency) advantage when they do business overseas.īut as the Bretton Woods conference demonstrated, that top spot can slip away pretty fast When international deals happen, they usually happen in dollars. isn't involved in that deal at all, but the U.S. Not Chilean pesos and not Egyptian pounds. They came together to try and establish an international system for trade and finance, to help bind the world together and increase prosperity for all.Įxample: If you're a clothing designer in Chile and you order cotton from Egypt for some shirts you plan to make, you will pay for that cotton in U.S. Bretton Woods was a gathering of world leaders at the end of World War II. ![]() The dollar's rise happened pretty suddenly at the Bretton Woods International Monetary Conference in 1944. At the time the British Pound Sterling was the international currency. It was a carefully engineered plan that unfolded in the mountains of New Hampshire nearly 80 years ago. ![]() dollar did not luck its way into the top spot. How it started: timing + muscle + lots of gold economy.īut could the dollar get knocked off the top spot? There are challengers emerging, and history shows that countries whose currency dominated the globe can fall from that top spot pretty fast. This is who gets helped - and hurt - by its newfound strengthĮconomists call it the "global reserve currency," a fancy title the dollar got about 80 years ago that has brought some pretty serious perks to the U.S. ![]()
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