In Defence of the Dollar

My friend, and Elliott alumni, Jay Newman and I wrote a piece for POLITICO on the dollar.

https://www.politico.eu/article/defense-us-dollar-global-economy-currencies

The United States dollar is under attack. Finance is prone to fads, and its latest mania is de-dollarization. While some brave or foolhardy souls will experiment with alternatives, most are likely to continue using the dollar.

The dollar is not just a set of banknotes, it is part of a system of trust earned because contracts are governed by U.S. (and U.K.) law — i.e. common law systems — that embody legal and social norms developed and tested over centuries. Rivals can offer nothing even remotely comparable.

Common law — enforceable in U.S. and U.K. courts — not only underpins the value of the dollar but is, in and of itself, the equivalent of a reserve currency. Rather than failing and fading as geopolitics becomes more fraught and contentious, both the dollar and the legal system that defines it will grow in influence and utility.