Bringing Them All Back Home? Dollar Diminution and U.S. Power

Author
Jonathan Kirshner
Content Type
Journal Article
Journal
The Washington Quarterly
Volume
36
Issue Number
3
Publication Date
Summer 2013
Institution
Center for Strategic and International Studies
Abstract
U.S. power is facing new macroeconomic constraints. They derive from a basic and generally underappreciated shift in U.S. engagement with the global macroeconomic order, which also complicates international politics. Since before WWII, the international monetary and financial system had served to enhance U.S. power and capabilities in its relations with other states. From the turn of the twenty-/first century, however, underlying economic problems threatened to turn this traditional (if implicit) source of strength into a chronic weakness. The 2007-08 global financial crisis has increased this risk. The United States will likely face new constraints on its power from the crisis and from new complications managing the dollar as a global currency. Moreover, the unfamiliarity of U.S. elites and citizens in facing such constraints will play a crucial role in determining how severe they will be in practice.
Political Geography
United States