2006-12-05 08:24:03 · 7 answers · asked by Anonymous in Social Science ➔ Economics
The world economy is NOT based on the US dollar. I'm not sure what that statement even means. The dollar is, however, the most prominent and important currency in many ways. It is often the currency of choice in the case of some International loan or bond issuance or international commodity market -- when some kind of common currency is desired in interactions of multiple nations.
That's due to the economic dominance of the US since the mid 20th century, the fact that the US has supplied so much funding for other nations (from the Marshall plan to decades of 3rd world aid), the fact the the World Bank and IMF and UN are largely funded by the US, and the fact that large US trade deficits keep sending a large supply of US dollars to other countries. Basically, due to the US's key role in the world.
2006-12-05 15:29:46 · answer #1 · answered by KevinStud99 6 · 0⤊ 0⤋
The dollar is not valuable at all. The Euro is worth about 33% more than the dollar today. The Pound is worth almost 2X the US dollar.
The standard for trade is becoming the Euro and the GB Pound has also a hold on the economic world
http://finance.yahoo.com/currency/convert?amt=1&from=EUR&to=USD&submit=Convert
The US dollar is almost at parity with the Canadian Dollar (it used to be worth almost 2X what the Canadian Dollar was worth)
http://finance.yahoo.com/currency/convert?amt=1&from=USD&to=CAD&submit=Convert
2006-12-05 16:27:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The US dollar has staying power and strength because it is backed by one of the largest subsets of world economic power.
The world economy is only affected by the US Dollar so far as the world wishes to invest in or buy from US interests.
2006-12-05 16:34:50 · answer #3 · answered by davidvario 3 · 0⤊ 1⤋
yes, the dollar is extremely valuable. Everything is measured in terms of it. IF it were suddently to loose that status, the world would have to find somethign else to fulfil its role. before dollar, it was gold. after dollar..who knows, maybe carbon dioxide.
2006-12-05 16:46:55 · answer #4 · answered by Yura 2 · 0⤊ 0⤋
The Euro is more valuable than the US dollar.
2006-12-05 16:31:12 · answer #5 · answered by Maus 7 · 1⤊ 0⤋
Actually, it is not the strongest currency. Euro and GBP are stronger. I think is not only a matter of the value of the dollar, it is a political issue as well.
2006-12-05 16:29:23 · answer #6 · answered by Victoria 4 · 1⤊ 0⤋
It's a lead country. Everyone else takes their cue from it. Like close formation flying. Think about that for a while.
2006-12-05 16:26:20 · answer #7 · answered by vanamont7 7 · 0⤊ 1⤋