Dollar Standard System And Financial Crisis

The financial crisis happened in 2008 had a significant effect to the global economy, explore the reasons for the economic crisis, different scholars give different points of view, it was the economic crisis as the credit crisis, domestic credit expansion in the United States, resulting in room real estate and financial bubble, which led to bank failures, corporate bankruptcies and economic crisis. In addition a more micro view is that the lack of effective supervision of financial institutions, bound by executives of financial institutions, incentives do not improve, banks, fund companies and other financial institutions in order to seek maximum benefits, the irresponsible conduct of financial innovation and leveraged transactions,Triggered a financial crisis. From a macro perspective, scholars of American economic development imbalances, long-term trade deficit, and the resulting crisis in the U.S. dollar as the root causes of the financial crisis.I believe that this financial crisis, the impact so great that, in addition to those outside the direct cause of its deeper reason is that after the collapse of the Bretton Woods international monetary system, a narrow sense, the dollar-based system has ceased to exist, may be U.S. dollar remains the world's trade, the major means of payment and settlement, most of the national currency options pegged to the dollar, the dollar has become more flexible, this lack of automatic adjustment mechanism for trade imbalances the U.S. dollar-based manufacturing on the fragile global economic system, the lack of big powers in the United States competence and conduct of the responsibility under the imminent financial crisis.In the dollar standard system, the U.S. dollar hegemony is the main body of the U.S. financial hegemony of the U.S. military supremacy and economic hegemony of the extension. Obtained from the post-war world financial hegemony, the United States access to a variety of benefits: access to the largest international seigniorage, to share the results of other country's economic growth and economic resources, control of economic activities in the initiative, the leading world economy. However, the U.S. dollar as the hegemonic currency at the same time to play with the maintenance of global economic stability and development responsibilities,These mainly include: to ensure that domestic prices and currency long-term stability and credibility; to maintain the U.S. dollar monetary credibility, while ensuring adequate liquidity; in the financial crisis at home and abroad to act as lender of last resort to provide relief and so on. The United States has been the trade-offs among the benefits and costs of its monetary policy and fiscal policy to make adjustments, when the U.S. economy is strong, due to the proceeds of dollar hegemony, make it ready to play a stabilizer of the international monetary system, dominate the world economy; When the strength of the U.S. economy weakens in the cost of maintaining the world's financial order, the rise in the United States at the expense of global economic stability and the interests of other countries, establishment of an enabling domestic economic development of their fiscal and monetary policies. The dollar-based system, the international monetary system in the United States formed a huge deficit. With the weakening strength of the U.S. hegemony, in order to ensure its hegemony interests of the Maintenance of the dollar in the center of the international monetary system, a long time the United States to rely on to attract a large number of deposits in the world. To stimulate economic growth in high-debt model of economic development to run, the U.S. economy has become impossible to maintain once the cyclical downturn in the domestic economy began to emerge, monetary policy to the depreciation of the dollar continued to raise interest rates to adjust to the fragile balance was broken, and thus caused the entire financial system crisis. So, in 2008 the outbreak of the financial crisis and the dollar standard system, under the abuse of the dollar hegemony the United States are fundamentally linked.Since the Bretton Woods system,the previous financial crisis and the United States will be linked to, which is characterized by dollar hegemony, the U.S. dollar-based monetary system, the system has a close relationship, the U.S. dollar affected the world economy. The Bretton Woods system, the U.S. dollar and gold-linked dollar-based system gradually formed, although the final collapse of the Bretton Woods system, but the U.S. dollar-based system, formed under the U.S. dollar hegemony has not ended, the dollar is still the center of the world currencies, although the fixed exchange rate system transformed into a floating exchange rate system, but the United States rely on their own to defend the economic strength of U.S. currency dominant position with the dollar's special status, the United States gained tremendous benefits, but also caused frequent economic crises, which as well as the dollar and dollar standard system of hegemony have great relationships. Purposes of this article is to Jamaica through research under the dollar standard system, based on the full analysis of the U.S. financial hegemony of the 2008 financial crisis, the occurrence, evolution and consequences of a series of effects, making the dollar hegemony in the financial crisis, after the United States and the world economy more clearly, especially on our currency in the international monetary system's status and the ability to enhance crisis response and provide a theoretical basis and the way forward. This article analyzes the U.S. dollar-based system, the formation of the dollar standard system under the dollar hegemony,U.S. dollar hegemony, the dollar-based and economic crisis; analysis of dollar standard system under the U.S. dollar and other currencies of the costs and benefits; through which analyzes the underlying causes of the financial crisis was discussed, and the face of financial crisis, China's strategy of further .