How the US dollar came to dominate the world

The Forum

From Colombia to Vietnam and beyond, the US dollar is the currency in which much of international business is conducted, and which many people outside the US use as a means of exchange and a store of value. So how did a country with just over 4 percent of the world’s population come to dominate global banking and trade? When the position of the US dollar as the linchpin of global commerce was confirmed at the end of the Second World War, not everyone was happy with this state of affairs: the French soon spoke of the Americans having an ‘exorbitant privilege’. Did they have a point? And what of the more recent efforts to replace the Greenback with other currencies? Iszi Lawrence follows the history of the US dollar from its origins to today with H W Brands Jr., Professor of history at the University of Texas at Austin; Barry Eichengreen, Professor of economics and political science at the University of California, Berkeley; Carola Frydman, Professor of finance at the Kellogg School of Management, Northwestern University in Evanston; Perry Mehrling, Professor of international political economy at the Pardee School of Global Studies, Boston University and World Service listeners.

[Photo: A roll of US dollar notes. Credit: Getty Images]