IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/18346_1.html
   My bibliography  Save this book chapter

Introduction and summary

In: All Fall Down

Author

Listed:
  • .

Abstract

The global economy has been shaped by the US dollar’s role as key currency. Other countries rely on export-led growth to earn the dollars they need for cross-border transactions. The resulting US trade deficits are financed by foreign investments in dollar assets that have raised US net debt to the rest of the world to historically high levels relative to GDP. Credit generated by foreign savings also created historically high levels of domestic debt that were an underlying cause of the financial crisis of 2008. The unregulated offshore market compounded the problem by forcing deregulation on national markets and eroding the ability of the US central bank to control the credit supply and prevent the debt bubble. Since the key currency system depends on confidence in US economic strength and growth, ongoing US dependence on foreign savings and debt-fed growth will weaken its economy and undermine confidence in the dollar.

Suggested Citation

  • ., 2018. "Introduction and summary," Chapters, in: All Fall Down, chapter 1, pages 1-18, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:18346_1
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781788119481.00008.xml
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdelhak Bassou & Badr Mandri & Bouchra Rahmouni & El Mostafa Rezrazi & Eric Ntumba & Fatima Ezzahra Mengoub & Hafsat Abiola & Mbuih Zukane & Mohamed Benaïssa & Mohammed Loulichki & Otaviano Canuto & , 2018. "ATLANTIC CURRENTS : An Annual Report on Wider Atlantic Perspectives and Patterns - Overcoming the Choke Points," Books & Reports, Policy Center for the New South, number 28, October.
    2. Mersky, Joshua P. & Janczewski, Colleen E. & Plummer Lee, ChienTi & Yasin, Tajammal, 2022. "Impact of home visiting programs on parenting stress in low-income women: Findings from a community-based trial at an urban health department," Children and Youth Services Review, Elsevier, vol. 142(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:18346_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.