What Does the International Currency System Really Look Like?

38 Pages Posted: 5 Aug 2013

See all articles by Benjamin Jerry Cohen

Benjamin Jerry Cohen

University of California, Santa Barbara

Tabitha M. Benney

University of Utah

Date Written: 2013

Abstract

There has been a lot of debate lately about the shape of the international currency system. Increasingly, we are told, the world is moving toward a multicurrency system with several poles, implying that the system is becoming more competitive. Polarity, however, is a notoriously crude measure of the level of competition in any kind of system, economic or political. If analysis is to be at all accurate, it should take into account not only the number of poles in a system but also the inequalities among them – an alternative approach encompassed by the concept of concentration. In this paper we make use of the concept of concentration to provide a more accurate picture of the competitive structure of the currency system today. When taking account of concentration as well as polarity, our results suggest that the competitive structure of the system is little changed over a period stretching back more than two decades.

Keywords: international currency, multicurrency system, dollar, euro, polarity, concentration

Suggested Citation

Cohen, Benjamin Jerry and Benney, Tabitha M., What Does the International Currency System Really Look Like? (2013). APSA 2013 Annual Meeting Paper; American Political Science Association 2013 Annual Meeting. Available at SSRN: https://ssrn.com/abstract=2299631

Benjamin Jerry Cohen (Contact Author)

University of California, Santa Barbara ( email )

Dept. of Political Science
University of California
Santa Barbara, CA 93106-9420
United States
805-893-8763 (Phone)
805-568-0068 (Fax)

HOME PAGE: http://www.polsci.eucsb.edu/faculty/cohen

Tabitha M. Benney

University of Utah ( email )

260 S. Central Campus Drive, Room 252
Salt Lake City, UT 84112
United States

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