October 20, 2021
Economy

Opinion | Krugman Wonks Out: The Greenback Rules. So What?

This article is a wonky edition of Paul Krugman’s free newsletter. You can sign up here to receive it.

Cryptocurrency was supposed to replace government-issued fiat currency in our daily lives. It hasn’t. But one thing I’m still hearing from the faithful is that Bitcoin, or Ethereum, or maybe some crypto asset introduced by the Chinese, will soon replace the dollar as the global currency of choice.

That’s also very unlikely to happen, since it’s very hard for a currency to function as global money unless it functions as ordinary money first. But still, it’s definitely conceivable that one of these days something will displace the dollar from its current dominance. I used to think the euro might be a contender, although Europe’s troubles now make that seem like a distant prospect. Still, nothing monetary is forever.

But does it matter? My old teacher Charles Kindleberger…

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