There has been talk in Europe about American hegemony being somehow based upon the use of the dollar in the world. I just don't see that connection at all. Robert C. Solomon americanbaseconnection Change image and share on social
Back in those days, in the fifties and sixties, countries had balance of payment's deficits or surpluses, those were reflected much more than today in movements of reserves among countries. Robert C. Solomon backbalancecountry Change image and share on social
There is a European Central Bank, of course, established and it has the structure similar to the Federal Reserve system, not precisely the same but similar. Robert C. Solomon bankcentralestablish Change image and share on social
On private transactions, I'll just go very quickly now, a major difference between the United States and Euroland is that in Europe banks are much more important in financial transactions than in the United States. Robert C. Solomon bankdifferenceeuroland share on social
So if the euro, if Euroland is to become a reserve center, if the euro is to become a reserve currency, Euroland will have to have a deficit in its overall balance of payments. Robert C. Solomon balancecentercurrency Change image and share on social
The major material advantage, financial advantage from having a reserve currency is that between 200 and 300 billion dollar bills, that may be twenty, fifty, hundred dollar bills as well as ones, exist in the world - a lot of them in Russia as you all know I'm sure. Robert C. Solomon advantagebillbillion share on social
The prices of all imports would rise if the dollar depreciates. Robert C. Solomon depreciatedollarimport Change image and share on social
The dollar went up some eighty percent in real terms as I recall now or something like that - from '80 to '85. Robert C. Solomon dollareightypercent Change image and share on social
In the United States, securities markets are much more developed than they are in Europe. Robert C. Solomon developeuropemarket Change image and share on social
Some countries that are close to Europe that already hold Deutschemarks, clearly would automatically hold euros, those are countries in Eastern Europe mainly, a few countries in Africa. Robert C. Solomon africaautomaticallyclose Change image and share on social
