Financial Hegemony And The Impact On International Relations

Firstly, the paper analyzes the concept and essence of the financial power by the theories of international relations and international finance, and points out that financial hegemony is the extension of military hegemony and political hegemony in the economic realm, military hegemony and political hegemony are the basis of financial hegemony. Secondly, the author thinks financial hegemony is based upon national power and under the influence of international Politics by analyzing the establishment of financial hegemony in England and the United States. Thirdly, it also studies the development process, the system and the influence of financial hegemony in the United States. The author points out: (1) Financial hegemony of the United States has no decline with the breakup of the Bretton Woods System, the United States has established a new financial hegemony along with the rise of finance liberalism and finance globalization on the contrary. For a long time in the future, the dollar will maintain dominant in international currency system. ( 2 ) The unsteady of financial hegemony in the United States is the main reason that brings international financial crisis and a series of negative influence to the international relations. Finally, the author brings out some measures that China how to deal with the challenges of financial hegemony.