Dissertation > Economic > Fiscal, monetary > Currency > World currency

The Evolution and Comparison of Anglo-American Monetary Hegemony

Author LinTianTian
Tutor YuZhongHua
School Dongbei University of Finance
Course Finance
Keywords monetary hegemony Anglo-American evolution origin
CLC F821
Type Master's thesis
Year 2013
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The international monetary system came into being since the industrial revolution, it was promoted to the earth with the foreign aggression by early colonists and overseas trade. Through the two World War, it was collapsed, reconstructed and disbanded, until today, it was a system of "no system". It underwent the gold standard, the dollar standard, then diversified reserve currency today. Since it emerged, the international monetary system has undergone tremendous change.When the overall strength of a country is strong, its currency tend to be a international reserve currency, but this is only the first step in the evolution of the monetary hegemony. On the process of being monetary hegemony, there are too many variables and uncertainties. Hegemonists research to develop a full range of strategies to support the currency hegemony and game with other national political power.To some tent, the evolution of sterling hegemony and dollar hegemony repeated again and again. In this historical process, gold standard, silver standard, double standard and the dollar standard turns out, and they lived again in a certain period. The Bretton Woods system, oil dollars, Jamaica system and the monetary hegemony rivalry run through them. The international monetary systems are means of realization of monetary hegemony, but not purpose. Seeing this point, it is easier to understand the evolution of the international monetary system. After a brief review of history of the sterling hegemony and the dollar hegemony, this paper analyses the cause that formed the monetary hegemony and draw the following conclusions:1.credit is a hotbed of monetary hegemony, abuse of trust caused monetary spamming and hegemony;2.enough money and perfect financial system expanded the use of the monetary;3. the hegemonic currency is based on the country’s production, by the vast overseas market,it expand the use range.4. war lingered in the international monetary system, in order to match the currency hegemony, UN and US launch and participate in wars. The difference between the sterling hegemony and the dollar hegemony is UN maintain hegemony by more aggressive behavior and the United States of America took more subtle means,especially after the formation of oil dollars, it took the invisible currency politics strategic which consider oil and food dollar to be the core with the fight on right of the international discourse to protect the interests of the dollar hegemonyThere is no justice since the international monetary system incepted because it is a tool to seek hegemony and full of flavor of predatory and colonial. In the process of alternating rule this system by new and old settlers, the means of maintaining the hegemony varies with the changes of the times and the contrast of political power and it exerted a profound impact on the international political pattern. In this process capitalism became from industrial capital to finance capital. But one thing didn’t change:the colonists’ constant ambition for territorial expansion and the essence of capital hoarding and profiteering. As can be seen, in both Britain and the United States of America, it is long time trusted that colonial expansion and strength is king. The difference is that the United States of America pays more attention to the ideological warfare and economic war, it no longer behavior as early British and American who conduct evil activities eve openly to grab, of course, when necessary, they may directly fight. But the cost of war after all is higher and it is easier to control public opinion by low cost and not easy to make people aware of the ideology, this becomes new choice of the United States of America with inputting currency politics strategy. The United States of America knows that as long as one country master the international discourse right and let other countries do not occupy the moral high ground and even make no voice, to maintain the currency hegemony will cost low and make good effect.In fact, The dollar has become the debt money. It can be concluded from the history of central bank modern banking system of UN and US. Modern banking system, no matter the Bank of England or the Federal Reserve, is creating credit money, so the central banks of other countries. But the arbitrary point of dollar hegemony is the credit is infinitely zoomed and deadbeat, which caused people’s discontent to the dollar hegemony. While the United States rely on the strength and the public opinion warfare to force other countries to bend to the status quo, it behaviors the same British’s approach substantially. Therefore, monetary hegemonist over all adopt colonial plunder,just change their means.Now, all participant are seeking to build a new international monetary system, United States of America cannot constitute a unipolar superpower, the trend to deal with international transaction is to discuss. What the participant need is confidence of showdown and support of the people at critical moment. It is important to recognize the false of hegemony values and routines of hegemony, in order to construct a fair international monetary system.

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