A Historical Analysis Of Us Dollar Strategy In Maintaining Hegemony From The Perspective Of Dynamic Game

The United States has successfully maintained its dollar hegemony and seized wealth from the world by virtue of its strong monetary power and hegemonic strategy since the US dollar was decoupled with gold.However,it has encountered significant challenges in the same attempts in recent years.This thesis aims to discuss whether the US dollar will continue sustaining its hegemony and potential implications on the international monetary system under new circumstances.To this end,this thesis adopted case study and historical analysis to discuss how the U.S.contained the internationalization of the euro and the yen and then evaluate the effects of its hegemonic maintenance strategy on the ruble and the RMB in the new round from the perspective of dynamic game.The US monetary power and other pillars support each other and the overall US hegemony.Its robust military,economy,and institutional design consolidate the monetary power of the US dollar,which in turn invests in their development.This thesis argues that the U.S.won the dynamic game with Japan and the EU due to US influence on their economic policies and these two regions’ institutional dysfunctions.In the new round of hegemonic maintenance,the US hegemonic position is relatively declining,while Russia and China have the potential to take countermeasures and even weaken the dollar hegemony by challenging key pillars of the overall US hegemony.Under such new circumstances,if the United States continues to abuse sanctions and its “dollar tide” strategy against its allies and rivals,its hegemonic maintenance strategy will no longer be effective as it once was,leading to eroding credit and weakened alliances.Based on the declining US monetary power and accelerating de-dollarization trend,this thesis predicts that the US-dominated international monetary system tends to be a multi-currency one.The key is how to promote cooperation between the euro and the RMB in the post-dollar era,which is essential for the RMB internationalization and for emerging economies to develop financial regionalism.