Axel Springer Lecture

Dollar Dominance and the Future of American Power

Commentators in recent years have predicted the decline of the US dollar as the world’s primary reserve currency. But Mark Copelovitch argues that the dollar’s dominance will persist for many decades to come, in large part because none of the supposed challengers – including the euro and renminbi – meet the economic or political requirements to supplant it. The dollar’s dominance creates opportunities for more ambitious economic policy at home and challenges the prevailing narrative about the inevitable decline of American hegemony in world politics. It also has important implications for how we view the rise of China and the future of transatlantic cooperation. In this talk, Copelovitch looks at the sources of the dollar’s enduring dominance and how recent global crises have actually further cemented its position.