The Special Role of the United States in the Global Financial System

  • Anthony Elson


This chapter begins with an examination of the special privileges that the United States has enjoyed from the roles of the US dollar as the dominant currency for trade and financial exchanges and US government debt as the pre-eminent safe asset for international investors. The economic benefits of financial openness and international financial integration for the efficiency of investment and the diversification of risk are then discussed, as well as the positive links between financial sector expansion and economic growth. The chapter concludes with a case study of the links between financial liberalization and the global financial crisis, the main factors that gave rise to the crisis and the key policy responses adopted to contain its adverse effects.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Anthony Elson
    • 1
  1. 1.School of Advanced International StudiesJohns Hopkins UniversityWashington, DCUSA

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