Dominant and dangerous | The Economist

Dominant and dangerous | The Economist

Our cookie policy has changed. Review our cookies policy for more details and to change your cookie preference. By continuing to browse this site you are agreeing to our use of cookies. The world economy Dominant and dangerous As America's economic supremacy fades, the primacy of the dollar looks unsustainable Oct 3rd 2015 When the buck stops For decades, America's economic might legitimised the dollar's claims to reign supreme. But, as our special report this week explains, a faultline has opened between America's economic clout and its financial muscle. The United States accounts for 23% of global GDP and 12% of merchandise trade. Yet about 60% of the world's output, and a similar share of the planet's people, lie within a de facto dollar zone, in which currencies are pegged to the dollar or move in some sympathy with it. American firms' share of the stock of international corporate investment has fallen from 39% in 1999 to 24% today.

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