Washington should take the lead in getting the world to abandon the dollar as the dominant reserve currency. My basic argument is that every twenty to thirty years – whenever, it seems, that American current account deficits surge – we hear dire warnings in the US and abroad about the end of the dollar’s dominance as the world’s reserve currency. But these predictions are likely to be as wrong now as they have been in the past. Reserve currency status is a global public good that comes with a cost, and people often forget that cost. more »

The April BRIC conference in Hainan, China issued a lengthy declaration. Lack of specificity was somewhat disappointing but the importance of declaration cannot be ignored. Newer silk trade routes are being formed with multiple centers, of which Europe and US will be amongst many. However, as a reading of the news article clearly reveals, the declaration is long on enumerated points and short on definitive action. more »