THE DOLLAR TRAP : HOW THE US DOLLAR TIGHTENED ITS GRIP ON GLOBAL FINANCE

Eswar Prasad examines how the dollar came to have a central role in the world economy and demonstrates that it will remain the cornerstone of global finance for the foreseeable future. Marshalling a range of arguments and data and drawing on the latest research Prasad shows why it will be difficult to dislodge the dollar-centric system. With vast amounts of foreign financial capital locked up in dollar assets including US government securities other countries now have a strong incentive to prevent a dollar crash.Prasad takes the reader through key contemporary issues in international finance including the growing economic influence of emerging markets the currency wars the complexities of the China-US relationship and the role of institutions like the International Monetary Fund and offers new ideas for fixing the flawed monetary system. Readers are also given a rare look into some of the intrigue and backdoor scheming that go on in the corridors of international finance.The Dollar Trap offers a panoramic analysis of the fragile state of global finance and makes a compelling case that despite all its flaws the dollar will remain the ultimate safe-haven currency.