CURRENCY POWER

Monetary rivalry is a fact of life in the world economy. Intense competition between international currencies like the U.S. dollar, Europe's euro, and the Chinese yuan is profoundly political, going to the heart of the global balance of power. But what exactly is the relationship between currency and power, and what does it portend for the geopolitical standing of the United States, Europe, and China? Popular opinion holds that the days of the dollar, long the world's dominant currency, are numbered. By contrast, CURRENCY POWER argues that the current monetary rivalry still greatly favors America's greenback. Benjamin Cohen shows why neither the euro nor the yuan will supplant the dollar at the top of the global currency hierarchy.

Contrary to today's growing opinion, CURRENCY POWER demonstrates that the dollar will continue to be the leading global currency for some time to come.

Benjamin J. Cohen is the Louis G. Lancaster Professor of International Political Economy at the University of California, Santa Barbara.