The U.S. dollar has reigned supreme as the world's dominant reserve currency for nearly a century. But now the dollar's dominance is under threat. The near-collapse of the U.S. financial system in 2008, the high and rising level of U.S. government debt, and political gridlock in Washington have shaken confidence in the U.S. economy and the safety of its government debt. Other currencies such as China's renminbi are staking their own claims to become reserve currencies, adding to speculation that the dollar's glory days are coming to an end.
The Dollar Trap overturns this conventional wisdom. We show, in the aftermath of the financial crisis, U.S. policies and a dysfunctional international monetary system have paradoxically strengthened the dollar's importance. In international finance, it turns out, everything is relative. Ultimately, there is no good answer to this question: If not the dollar, then what? That is why, despite all its flaws, the dollar will remain the ultimate safe haven currency. Eswar Prasad
is the Tolani Senior Professor of Trade Policy at Cornell University. He is also a Senior Fellow at the Brookings Institution, where he holds the New Century Chair in International Economics, and a Research Associate at the National Bureau of Economic Research. He was previously Chief of the Financial Studies Division in the International Monetary Fund's Research Department and, before that, was the head of the IMF's China Division. Eswar Prasad's latest book, The Dollar Trap: How the U.S. Dollar Tightened Its Grip on Global Finance, has just been published by Princeton University Press.
His extensive publication record includes articles in numerous collected volumes as well as top academic journals. He has co-authored and edited numerous books and monographs, including on financial regulation and on China and India. Current research interests include the macroeconomics of financial globalization; financial regulation, monetary policy frameworks and exchange rate policies in emerging markets; and the Chinese and Indian economies.
Prasad has testified before the various Congressional committees, and his research on China has been cited in the US Congressional Record. His research work and op-ed articles have been featured extensively in prominent media outlets such as the Economist, Financial Times and Wall Street Journal. In addition, he has made frequent appearances on the BBC, Bloomberg, CNBC and CNN, among others.
Opening Address by Professor Joseph Cherian
, Director, CAMRI
Public Lecture by Professor Eswar Prasad
Panel Discussion: Professor Eswar Prasad, Dean Soumitra Dutta, Professor Kim Sun Bae
and Dean Bernard Yeung
Question and Answer Session
Closing Remarks by Mr Rohet Tolani, Managing Director, Tolani Shipping
Contact Ms Chow Pee Fun of CAMRI on tel: (65) 6601 1047 or at