Diminishing Dollar Hegemony: What Wars and Sanctions Failed to Accomplish, COVID-19 Has

Taskinsoy, John

doi:10.2139/ssrn.3570910

Cited by 15 publications

(8 citation statements)

References 88 publications

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“…Concerns have arisen, the increase in the death rate for COVID-19 causes more stagnation and less production, travel, and commercial ties, which explains the decrease in oil prices ( 27 , 28 ). That describes the countries implementation of large-scale prevention policy, and an attempt to revitalize the economy, through the budget and job support, allowing for a slight recovery in the market supported by preventive measures ( 28 , 29 ).…”

Section: Literature Reviewmentioning

confidence: 99%

COVID-19 Deaths Cases Impact on Oil Prices: Probable Scenarios on Saudi Arabia Economy

Algamdi

Brika

Musa

et al. 2021

Front. Public Health

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The purpose of this paper is to discuss death cases on the World, exacerbated investor fears, uncertainties, and increased volatility of crude oil prices in financial markets. The reaction absorbed the epidemic gradually until January 22. Still, the market situation changed soon with a sharp drop in prices, and prices slowly recovered after that until June 14. The data of this research using an econometric model, the ARDL (Autoregressive Distributed Lag), according to the Gets methodology, using daily data, January 22 –June 14, 2020. Our ARDL shows, the death ratio has a significant negative effect on oil price dynamics. However, the death ratio has an indirect impact on volatility in Crude Oil prices. The findings show that the death toll of COVID-19 has a significant impact on oil prices in Saudi Arabia (KSA). However, the preliminary results mainly influence by the situation reported in the USA. When we assess the case outside the USA, and we see the positive effect of the COVID-19 death figures on oil prices, therefore, stress the amplification of death-related risks to the financial market and the real economy, caused by increased, policy-induced economic uncertainty in the United States.

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Section: Literature Reviewmentioning

confidence: 99%

COVID-19 Deaths Cases Impact on Oil Prices: Probable Scenarios on Saudi Arabia Economy

Algamdi

Brika

Musa

et al. 2021

Front. Public Health

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“…In the context of fiscal and monetary lending, the Fed has grafted its risks onto other regions and countries. Even so, Silver Gate Bank and Silicon Valley Bank went bankrupt one after another, and such traces declare that the U.S. financial market is on the verge of collapse [8]. Scholars pointed out that the bankruptcy of Silicon Valley Bank was only abnormal in the financial, material, and real estate industries, and the impact was limited to the financial sector [9].…”

Section: Transfer Financial Risks Through the Hegemony Of The Us Dollarmentioning

confidence: 99%

The Role of the Real Economy in Resisting Dollar Hegemony

Chen

2024

AEMPS

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At present, the losses caused by COVID-19 have affected the economic construction of many countries, but the underlying essence is that the dollar hegemony uses weaponized currency to force other countries to participate in the process of financialization. The dollar's extracorporeal circulation has been affected by the external force of the new coronavirus, making the dollar's control weaker, and many single-industry countries have also derived the idea of getting rid of the dollar's control, which have been solved in countries with strong real economies. By exploring the role of the real economy in combating US dollar hegemony, this paper points out that a country with a strong real economy can make its internal supply chain more complete, create jobs and control inflation at the same time, reduce the possible damage caused by financial risks in the process of dollar hegemony, and play a positive role in the recovery of the economy after damage.

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“…House prices flattened off, which meant that the housing market had entered a bubble (Baker, 2008). When the bubble burst, the housing market plummeted by 32% (Taskinsoy, 2020). This meant that, in the case of defaults, the banks could not recover the full amounts of the home loans.…”

Section: Contextualising the Financialisation Climatementioning

confidence: 99%

“…It has five key functions, aimed at promoting financial stability, both globally and locally. They are (a) fostering a safe system of payment for US dollar transactions; (b) ensuring the safety and efficiency of financial institutions by monitoring their systemic impact; (c) resilience appraisal of the US monetary system to help establish measures to mitigate the risk of systemic crisis; and (d) the use of monetary policies to help regulate prices and maintain sensible interest rates (Taskinsoy, 2020). These five functions are institutionalised fiscal crisis mitigation tools that are being used to mitigate the woes of poor regulation, including hyperinflation and economic collapse.…”

Section: The Role Of the Us Federal Reservementioning

confidence: 99%

The Finance Money Crisis and Cryptocurrencies

Mbalaka

2023

DPS

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The speculative financial services sector and the systemic failures of financial globalisation have prompted a growing call for delinking from the hegemony of the US dollar. These systemic failures have been illustrated by financial mismanagement and the financial crisis of 2007-8. This event paints a dire picture of the consequences associated with poor regulation of the financial sector. This study seeks to interpret these events in terms of Gramsci’s Prison Notebooks and his concept of the ‘morbid symptoms of the interregnum’. According to Babic (2020), these occur when a hegemony and its institutions are ‘dying’, thereby hampering their power. This notion also highlights that the future remains murky, despite public calls for change. Gramsci calls this the ‘new that cannot be born’.This study seeks to extend this framework to the current state of the dollar hegemony. The ‘morbid symptoms’ we will examine include the call to delink from the speculative high-risk US economy, the emergence of cryptocurrencies, and the politics surrounding fiat money. Some have argued that the emergence of cryptocurrencies could be the ‘new’. However, this study argues that the negative characteristics associated with cryptocurrencies such as cybersecurity concerns and price volatility create ambiguity about whether cryptocurrency is the ideal trajectory. Therefore, it argues that ambiguity and calls for change qualify our current monetary situation to be classified as a Gramscian interregnum.It also examines the current fiat money discourse by highlighting how the dollar hegemony may be succeeded by another fiat currency. However, it argues that the inflationary shortfalls of fiat money make this a fallible option, thereby perpetuating the ambiguities within the Gramscian interregnum.

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Diminishing Dollar Hegemony: What Wars and Sanctions Failed to Accomplish, COVID-19 Has

Cited by 15 publications

References 88 publications

COVID-19 Deaths Cases Impact on Oil Prices: Probable Scenarios on Saudi Arabia Economy

COVID-19 Deaths Cases Impact on Oil Prices: Probable Scenarios on Saudi Arabia Economy

The Role of the Real Economy in Resisting Dollar Hegemony

The Finance Money Crisis and Cryptocurrencies

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