Dollar Will Remain Currency Of World Trade In Coming Year
Yesterday, I met Prof Helene Rey of London Business School . She tried to peep into the future scenario of international monetary and financial system. So there had been a theory of hegemonic stability around , which says that there is a country at the Centre of the international monetary and financial system plays a critical role in stabilizing the world economy.this it provides liquidity whenever the monetary system is proven in panic. And also Centre country can be an importer of last resort when the world economy be importer of last resort when the world economy is in trouble as it can borrow from the rest of the world since it issues a type of liability which is always in high demand. So till 1930 it was UK and gradually thereafter the role is taken by USA. And rightly so US also act as the World Banker. But during past decade, people started noticing that the economic centre of world started moving towards Asia. Especially China has emerged as a geopolitical force with its cons...