Changing Fortunes: The World's Money and the Threat to American Leadership

October 29, 2020
Changing Fortunes: The World's Money and the Threat to American Leadership

searchable (OCR), TOC bookmarked, Paginated.A highly recommended book by Ray Dalio, about how the USD becamethe global reserve currency by the person who negotiated BrettonWoods agreement himself. Paul Volcker was part of the negotiatingteam in 1945 that created this system and the world we are livingin.How much of the United States' postwar economic decline wasdesirable, a shedding of excessive global ambitions, and how muchwas due to self-inflicted wounds? Volcker, ex-chair of the FederalReserve Board, and Gyohten, former finance minister of Japan,address this question as they review, in alternating chapters, thedecline of the Bretton Woods system of fixed exchange rates, theoil shocks of the 1970s, efforts to curb inflation and theinternational debt crisis of the 1980s. Based on a joint lectureseries given by the authors at Princeton's Woodrow Wilson School,this colloquium provides a valuable global perspective on thefragile U.S.-Japanese alliance and the prospects for erecting a newframework for cooperation on foreign trade and exchange rates.Volcker notes with alarm America's protectionist drift, whileGyohten emphasizes that Japan must open its markets and that theU.S. can no longer play the solo role of world policeman. Authortour.