Ex-IMF official argues why crisis left dollar strong
Updated: 2015-09-02 09:49
By Yang Yang(China Daily)
|
||||||||
Eswar S. Prasad, former director of IMF's China division, was in Beijing for the launch of the Chinese edition of his book The Dollar Trap.[Photo provided to China Daily] |
Since the outbreak of the global financial crisis in 2008, one question that has been frequently asked: "Is the dominant position of the dollar being threatened?"
In 2008 and 2009, the financial system in the United States nearly broke down. With no effective policies, plus the new competitor RMB on its road to internationalization, it has been predicted that the dollar as the major reserve currency might be replaced.
But, in The Dollar Trap, whose Chinese edition was published in August, author Eswar S. Prasad argues, to the contrary, he says, the global financial crisis, the disordered international money system and the US government's policies have, in fact, consolidated the position of the dollar.
Prasad, 50, former director of IMF's China division, has been studying global currencies for decades. He is now a Tolani senior professor of trade policy and economics at Cornell University.
"This is not a book I planned to write," he says at the book launch ceremony during the 22nd Beijing International Book Fair.
"When I started writing, I was planning to talk about how the global financial crisis started in the US, and whether it meant that the dollar was going to lose its primacy in global finance very quickly," he says.
But in doing research, he was surprised to see numbers indicating that after the global financial crisis, the dollar's position became even stronger.
"Why did this happen?" he asks.
"It's not because the US economy is wonderful and strong, but simply because it's stronger than the rest of the world," he says.
- Robotic exhibition set to kick off in Shenyang
- Eat from a paper hotpot
- 8 interesting facts about the upcoming V-day Parade
- Top 10 economies by growth rate among G20
- Happy faces in Tibet
- Historic images of military parades
- Top 10 wealthiest Chinese in the world in 2015
- Models heat up Xinjiang desert with Atlas silk
Most Viewed
Editor's Picks
8 highlights about V-day Parade |
Glimpses of Tibet: Plateaus, people and faith |
Chinese entrepreneurs remain optimistic despite economic downfall |
50th anniversary of Tibet autonomous region |
Tianjin explosions: Deaths, destruction and bravery |
Cinemas enjoy strong first half |
Today's Top News
Senior US official to visit China on bilateral issues
China manufacturing PMI falls to 49.7 in August
Second homes in China need lower down payment
Xi meets with former KMT chairman
Chinese athletes win 9 medals at Beijing world championships
Houston physicist invited to view V-Day parade in Beijing
It's a boy! DC panda thriving
Journalist, securities regulatory official held for stock market violation
US Weekly
Geared to go |
The place to be |