CEU Electronic Theses and Dissertations, 2024
| Author | Alemi, Mohammad Javad |
|---|---|
| Title | Towards A Theory of Currency Geoeconomics |
| Summary | Unlike previous episodes, the latest wave of global backlash against the dollar in the aftermath of the Ukraine war is primarily motivated by geoeconomic concerns. This theoretical research investigates the link between dominant currencies and international politics. It specifically asks what aspect of currency dominance is the most geoeconomically potent. This potential is the product of the issuer’s ability to exploit its currency’s global status for achieving strategic ends as well as the countermeasures that others can employ to balance against it. With a focus on the U.S. dollar, I decompose the ‘exorbitant privilege’ of international currencies into the political and economic dimensions. I argue that the global trends toward hedging against ‘political risks’ eventually erode the political privilege of dollar hegemony – the ability to weaponize dollar dependence in foreign exchange reserves or international payments. However, the economic privilege – the ability to run large and enduring current account deficits – continues supplying the United States with resources to finance its strategies. |
| Supervisor | Bremer, Björn |
| Department | Political Science MA |
| Full text | https://www.etd.ceu.edu/2024/alemi_mohammad-javad.pdf |
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