Exorbitant Privilege and the Dollarization of Global Trade

Our nation is in an advantageous position in the world economy thanks to two phenomena: exorbitant privilege and dollarization. Boston College economists Ryan Chahrour and Rosen Valchev examined these trends in tandem, in a theoretical study that posits two economies — that of the US and EU — where the dominant role of the US is due to its role as the main medium of exchange. Read the full interview at CardRates.com.