A Chronicle of Currencies
Source details
- Canonical URL
- A Chronicle of Currencies
Other formats
Bibliographic details
- Authors: CATHERINE SCHENK
- Published: March 3, 2026
Central argument
- Barry Eichengreen contends that the US dollar’s continued dominance reflects the absence of a viable alternative currency rather than inherent irreplaceability.
- He warns that combined forces—“the US retreat from commitment to open markets, internationalization of the renminbi, the evolution of the euro, and fintech innovation”—could unsettle this dominance.
- Concluding assessment quoted verbatim: “none of these alternatives is ready for prime time”.
Scope and method
- Book: Money Beyond Borders: Global Currencies from Croesus to Crypto
- Author: Barry Eichengreen
- Publisher details preserved: Princeton University Press, Princeton, NJ, 2026, 344 pp. $29.95
- Approach: long historical sweep from Roman currency through Amsterdam’s 18th century financial history, 20th century monetary cycles, and forward-looking speculation on contemporary geopolitical and technological shocks.
- Audience: accessible to a generalist readership while drawing on scholarship in classical economic history and 18th and 20th century financial history.
Historical evidence and precedent
- Key historical episodes invoked:
- Since 1960 the US dollar has been central to global commerce and finance.
- 1960s and 1970s: inflation raised doubts about dollar usefulness.
- Mid-2000s: sustained dollar depreciation, China liberalization, and the launch of the euro stimulated speculation about successors.
- 2008 global financial crisis confirmed the resilience of the existing currency hierarchy.
- 1930s: used as a warning about the perils of deglobalization; prospect of a liquidity shock potentially provoking a version of the 1930s Great Depression.
Future scenarios and triggers for change
- Potential triggers that could shift the dollar’s role:
- EU members coordinating more closely (potential euro strengthening).
- Escalating US friction with China (geopolitical fragmentation encouraging de-dollarization).
- Fintech innovation producing a viable stablecoin not tethered only to the dollar.
- Author’s baseline judgement: as of the book’s writing, none of these alternatives was ready; however, more extreme geopolitical ructions since writing increase the likelihood of some outcomes.
Risks highlighted
- A transition away from dollar dominance could produce a shock to liquidity.
- Such a shock could precipitate severe global economic contraction, with Eichengreen invoking the 1930s Great Depression as a cautionary parallel.
Source: F&D Magazine book review by CATHERINE SCHENK, March 2026.
Content in this bundle
- A Chronicle of Currencies