Rania Khalek Dispatches cover image

The Rise and Fall of US Dollar Supremacy & How Sanctions Backfire w/ Prabhat Patnaik

Rania Khalek Dispatches

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The Importance of the US Dollar to Maintain US Hegemony Over the World Economy

Why is the value of the US dollar so important to maintaining US hegemony over the world economy? No, that's a very important question. You know, when a country has a current account deficit, it does one of two things. Whether it reduces its aggregate demand, creates unemployment or alternatively, it actually depreciates the currency. But the US doesn't have to depreciate the currency. The US does not have to create unemployment. It can keep printing dollars and the world would hold. That makes it very easy for the US to manage its balance of payments by printing dollars.

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