After the latest global slowdown and financial crisis, a debate in going on, on"Dollar Hegemony". What does it really mean?
1) it is the international trade practice which US $ is used to express value of all traded goods and services.
2) it is the situation in which all the nations are forcefully required to evaluate their currencies against the US $. Hence, countries are forced to maintain dollars reserves to trade in the global market.
3) economists are trying to evolve a solution to come out of this dollar trap. Dollar trap hegemony prevents exporting nations from spending domestically the $ they have earned from trade.
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