The United States is a credit power (in decline)
DOI:
https://doi.org/10.13133/2037-3651/18696Keywords:
US hegemony, International financial system, Endogenous money, DollarAbstract
This work criticizes the idea that the US’s difficulties in maintaining its power politics stem from its status as a debtor to foreigners, especially China. Instead, it emphasizes the role of the US as a creditor power that bases its international hegemony on the expansion of domestic and foreign debtors and is now challenged by the growth of a rival financial circuit led by China. It argues that the interpretation of the US as a mere debtor do not fully capitalize on studies on the endogeneity of money. The paper closes with a rejoinder to Brancaccio and Lucarelli (2024) regarding the US external debt.
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