Authors:
Luis Alberto López Rafaschieri and José Alberto López Rafaschieri
www.morochos.net
About the dollar's status in the scenario of the post-financial crisis, another factor that would side with the U.S. currency would be the still strong dependence of the global economy on the Yankees.
The United States remains the main consumer of goods and services on the planet. The exporting powers -China, Japan, Germany- as well as the most oil-producing countries and suppliers of raw materials, base much of their economies on exports to the United States.
Also, the United States remains the largest recipient of savings and investments in the world. From central banks to Arab oil tycoons, who has wealth generally has a significant part of it in dollars -whether in savings, paper stock, or real estate-
According to these realities, a violent depreciation of the Yankee currency would hurt the earnings of those who receive dollars as payment, and would cause losses in those with assets valued in that currency. Two unpleasant effects that would impact primarily on governments.
Consequently, while the global economy maintains a strong dependence on the U.S. currency, the whole world will be interested in a dollar that retains a relatively stable value. And in economics, convenience is often more decisive than the supply and demand.
Related articles:
- The post-financial crisis: The dollar's status
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