Since 2010, a period marked by economic, financial and geopolitical shocks, the dollar has steadily appreciated relative to most other currencies. The dollar’s real effective exchange rate has increased by nearly 40% from the end of the 2008 financial crisis and remains the ultimate safe haven for investors. Most of the calls for a demise of the dollar as the dominant currency in the global financial architecture rest on the changed structure of the global economy, particularly the rise of China. Over the last few decades, the US economy’s share of global gross domestic product has declined, while China’s and other ... (full story)