US Dollar Dominance Challenges Developing Economies

A new study published in the *World Review of Political Economy* and led by Sudipta Jha argues that the U.S. dollar’s dominant role in global finance limits policy options for poorer nations. The paper says existing de‑dollarisation measures—local‑currency contracts and the IMF’s Special Drawing Rights—have not addressed deeper systemic flaws, and it proposes a supranational currency linked to purchasing power and macro‑economic stability to reduce speculation and give emerging markets more freedom.

In a related analysis, Barry Eichengreen’s book *Money Beyond Borders* reviews the history of international reserve currencies, from ancient Greek owls to the British pound, and examines why the dollar has been dominant since World War II. Eichengreen suggests that, while the dollar remains pre‑eminent, structural factors could allow its influence to wane over time.