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

Jonathan Kirshner
Content Type
Journal Article
The Washington Quarterly
Issue Number
Publication Date
Summer 2013
Center for Strategic and International Studies
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