Whatever advantages the achievement of the dollar’s supremacy brought to the United States, she had to put up with the disadvantages and risks that went with them. These risks and disadvantages are all too familiar to those who have been following the heated controversy over sterling’s role as an international currency waged ever since Britain’s return to the gold standard in 1925. There are some incontestable advantages attached to that role for the benefit of the country whose currency plays it — the ‘reserve currency country’ as it is now called — in the form of invisible earnings and trade benefits, not to speak of national prestige which means financial, economic and political power. The question that is subject to controversy is whether the price paid for these advantages is not apt to be too high.
KeywordsGold Parity Bretton Wood System Wage Inflation American Investor Heated Controversy
Unable to display preview. Download preview PDF.