reserve currency

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description: foreign currency held by monetary authorities as part of forex reserves

232 results

Our Dollar, Your Problem: An Insider’s View of Seven Turbulent Decades of Global Finance, and the Road Ahead

by Kenneth Rogoff  · 27 Feb 2025  · 330pp  · 127,791 words

loans to developing countries. The payouts, though, are not in SDR but in one of its constituent currencies, typically dollars. Instead, the SDR is a “reserve currency” that can only be held by governments in the form of accounts at the IMF. Even in this sense, it is still an accounting unit

popularized the concept of U.S. dollar privilege, economists had already been debating for some time the benefits to the United States of being the reserve currency. Two splendid papers published in 1964, one by Chicago’s Robert Aliber and one by Walter Salant of the Brookings Institution, weighed the costs and

benefits of being the world’s “reserve currency.”5 (As discussed in chapter 1, the global monetary setup was a bit different back then; the U.S. dollar, and the U.S. dollar

seemed to be working for everyone, even if de Gaulle did not see it that way.) Aliber and Salant both emphasized that the dollar’s reserve-currency status—governments could hold the dollar in lieu of gold knowing that it could be converted—gave the United States broad scope to borrow from

great need, not the somewhat lower interest rate in normal times, that constituted the crux of the benefit to the United States of issuing the reserve currency. A modern-day economist would emphasize the distinction between dealing with an idiosyncratic supply shock, such as the need to quickly increase military spending, and

of exorbitant privilege that Giscard d’Estaing had in mind was far more sweeping than just the direct borrowing benefits accruing to the dollar’s reserve-currency status. After World War II, American private businesses and individuals had swept into Europe buying up businesses and building factories. While European governments had to

a script. 5. As governor of the Bank of England, Carney proposed a virtual synthetic currency composed of multiple reserve currencies. See Jason Douglas, “BOE’s Carney Floats the Idea of a New, Virtual Reserve Currency,” Wall Street Journal, August 23, 2019. 6. See Charles Kindleberger, “The Politics of International Money and World Language

University Press, 2012). 5. Robert Z. Aliber, “The Costs and Benefits of the U.S. Role as Reserve Currency Country,” Quarterly Journal of Economics 78, no. 3 (August 1964): 442–456. Walter A. Salant, “The Reserve Currency Role of the Dollar: Blessing or Burden to the United States?,” Review of Economics and Statistics 46

, 72, 79, 86, 112, 113 repression, financial, 262–63, 277, 279 Reserve Bank of Australia, 322 n.9 Reserve Bank of New Zealand, 232 reserve currency, 176, 213 reserves, currency, 4, 47, 138, 156–57, 161 Reshevsky, Samuel, 23 Rey, Hélène, 166, 167, 168, 169, 222, 223 Road to Singapore, The, 205 Robinson, David

Money in the Metaverse: Digital Assets, Online Identities, Spatial Computing and Why Virtual Worlds Mean Real Business

by David G. W. Birch and Victoria Richardson  · 28 Apr 2024  · 249pp  · 74,201 words

another story) and then, after further technological developments in communications, to New York, which became the centre of world finance, with the dollar as the reserve currency. But the point is made: Giraudo observed that while geography and politics had a strong influence on the location of financial centres, the deciding element

dollar will dominate because the fact is that most people around the world still want to hold dollars, given that the dollar is the global reserve currency, while few people have a desire to hold yuan (and no one wants to hold, for example, rubles). Public. Finally, there are stablecoins issued by

The Dream of Europe: Travels in the Twenty-First Century

by Geert Mak  · 27 Oct 2021  · 722pp  · 223,701 words

was perhaps the most important effect of the crisis. The euro missed out on a chance to take over from the dollar as the global reserve currency. After 2008 that opportunity was lost. For China, the long term meant something rather longer. So what had become of the ordinary European citizen amid

Gilded Rage: Elon Musk and the Radicalization of Silicon Valley

by Jacob Silverman  · 9 Oct 2025  · 312pp  · 103,645 words

to inflate the price of a digital token that, even after 15-plus years of searching, had no use case beyond speculation and being the reserve currency for global cybercrime. That the proposal happened to be completely against Bitcoin’s libertarian founding purpose, separating money from the state, was no small irony

Big Debt Crises

by Ray Dalio  · 9 Sep 2018  · 782pp  · 187,875 words

to cause foreign capital to pull back. This can happen for reasons unrelated to conditions in the domestic economy (e.g., cyclical conditions in a reserve currency country leads to a tightening in liquidity in that currency, or a financial crisis results in a pullback of capital, etc.). Also, a rise in

Inflationary Deleveragings or Hyperinflations? While inflationary depressions are possible in all countries/currencies, they are far more likely in countries that: Don’t have a reserve currency (so there is not a global bias to hold their currency/debt as a store hold of wealth) Have low foreign-exchange reserves (the cushion

the differences between the Weimar case study and the US Great Depression and 2007–2011 case studies, which are also examined in Part 2. Can reserve-currency countries that don’t have significant foreign-currency debt have inflationary depressions? While they are much less likely to have inflationary contractions that are as

slowly and later in the deleveraging process, after a sustained and repeated overuse of stimulation to reverse deflationary deleveraging. Any country, including one with a reserve currency, can experience some movement out of its currency, which changes the severity of the trade-off between inflation and growth described earlier. If a

permits much higher inflation in order to keep growth stronger by printing lots of money, it can further undermine demand for its currency, erode its reserve currency status (e.g., make investors view it as less of a store hold of wealth), and turn its deleveraging into an inflationary one. The Phases

mentioned in the archetype template, while inflationary depressions are possible in all countries/currencies, they are most common in countries that: Don’t have a reserve currency: So there is not a global bias to hold their currency/debt as a store hold of wealth Have low foreign exchange reserves: So there

end of the war, the German economy met all of these conditions. Losing the war meant that the mark was not going to be the reserve currency of the postwar era. A large stock of external debts had been acquired, and it was very likely that the Allies would force Germany to

to service it existed around the world, a global dollar shortage emerged during the first half of 1931. Classically, there is a squeeze in a reserve currency that is widely lent by foreign financial institutions when there is a collapse of credit creation in that currency. Although other currencies faced a shortage

debt is a short cash position—i.e., a commitment to deliver cash that one doesn’t have. Because the dollar is the world’s reserve currency, and because of the dollar surplus recycling that has taken place over the past few years…lots of dollar denominated debt has been built up

and treasury bonds declined while the dollar collapsed and commodities surged. This action is consistent with a loss of faith in the US as a reserve currency, and, if it continues, puts the US economy and financial system even more at risk.” –BDO September 24, 2008 Economic Activity Is Slowing across Many

increasing government supply with tight liquidity; dealers can’t finance inventory, hedge funds can’t borrow, foreigners are losing confidence in the dollar as a reserve currency, and the desire for cash is trumping all forms of risk, even the yield curve risk of a treasury bond.” –BDO October 8, 2008 A

The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order

by Benn Steil  · 14 May 2013  · 710pp  · 164,527 words

believed to be at constant work. Keynes would apply his insight in the design of a new global monetary architecture, built around a new international reserve currency—one that would be a threat to the global supremacy of the U.S. dollar and which White was determined to keep from seeing the

an international conference take place.”85 The question of how to ensure that the dollar permanently supplanted the pound as the global trade, financing, and reserve currency was to occupy him for the remainder of his time at Treasury. On the European front, 1938 was to prove a pivotal year in boosting

looser system economized on the use of gold and made its money more elastic to the actual needs of business. Those who insisted that a reserve currency need take the form of a physical commodity were misguidedly backing “a relic of a time when governments were less trustworthy in these matters than

be a beneficiary, rather than victim, of hot money flows in a crisis. The key is that it happens to issue the world’s dominant reserve currency. Keynes acknowledged the success of the prewar gold standard, but maintained that it was an anomaly. He pointed out that when London was the chief

identical, their cures could not have been more different. Triffin harked directly back to Keynes’s “bancor” alternative to the White Plan: a new international reserve currency managed by the IMF. He suggested some bureaucratic safeguards against the potential inflationary bias of the scheme, but was otherwise satisfied simply to quote Keynes

agree on a new mechanism for stabilizing exchange rates to be a bad thing. Ten years prior, while Triffin had been advocating a new international reserve currency and Rueff a return to the classical gold standard, University of Chicago economist Milton Friedman had been preaching to Congress the benefits of a floating

farsighted.” He called on the IMF to take the lead in boosting the all-but-forgotten SDR—to make it into a true “super-sovereign reserve currency,” using the model of Keynes’s bancor.37 Xinhua, after blasting the United States for its “debt addiction” in 2011, repeated Zhou’s call for

a “new, stable, and secured global reserve currency.”38 China, though a huge creditor of the United States, is, unlike the United States in the 1940s, in no position to orchestrate a Bretton

incentive for central banks to hold much more of them. Paradoxically, although it was Keynes who argued for, and White who fiercely resisted, a supranational reserve currency in the run-up to Bretton Woods, such a currency would have far greater viability in a world dominated by state trading—of the sort

Tower of Basel: The Shadowy History of the Secret Bank That Runs the World

by Adam Lebor  · 28 May 2013  · 438pp  · 109,306 words

(IMF) and an International Bank for Reconstruction and Development (BRD), which became part of the World Bank. The IMF would monitor exchange rates and lend reserve currencies to indebted countries. The new bank would provide loans to underdeveloped countries. Bretton Woods also gave its name to a new international currency exchange system

continuing drain on Britain’s economy of its empire and the country’s general economic malaise made sterling increasingly vulnerable. But sterling was also a reserve currency, especially across Britain’s current and former dominions. Thus sterling, like the price of gold, had to be stabilized. The BIS was not a lender

member financial policies, 245–246 purpose, xix–xxi, 5, 20, 42–43, 53–54 Reichsbank gold account in, 85 rescue packages, coordination of, 206–207 reserve currency rescue, coordination of, 193 as safe haven from creditors, 261–262 secrecy, tradition of, xv–xviii, 259 social responsibility, need for, 268–269 transnational economy

), 6 Young Plan (1929), 11–13 “Report to the Secretary on the Acquiescence of this Government in the Murder of Jews” (Morgenthau’s staff), 160 Reserve currency rescue, coordination of by BIS, 193 Retinger, Joseph, 173 Revelstoke, Lord (John Baring), 11, 12 Reynolds, Jackson, 18 Ribbontrop, Joachim von, 90 Rijksbank, 108 Ripley

Money Free and Unfree

by George A. Selgin  · 14 Jun 2017  · 454pp  · 134,482 words

the point of causing inflation.29 It would not be long before events proved Owen’s confidence misplaced, while vindicating Root’s pessimism. Although Federal Reserve currency did indeed prove more elastic than national bank notes had been, its elasticity was far from being the sort needed to achieve financial stability. Although

’s anticipated role as a reserve or “key” currency. After Great Britain devalued the pound in November 1967, it effectively ceased to be an important reserve currency. 17. See Bordo (1993: 39, Chart 1.10). The claim of several authorities (cited in Bordo 1993: 68) that “the growth of the monetary gold

(31 May): http://sabew.org/2011/05/let’s-get-going-on-the-real-story-of-the-financial-crisis-securitized-banking. Friedman, M. (1953) “Commodity Reserve Currency.” In Essays in Positive Economics, 204–50. Chicago: University of Chicago Press. ——— (1960) A Program for Monetary Stability. New York: Fordham University Press. ——— (1961a) “Real

The End of Alchemy: Money, Banking and the Future of the Global Economy

by Mervyn King  · 3 Mar 2016  · 464pp  · 139,088 words

repay. But the political commitment of emerging economies to their export-led growth strategy was extremely strong. And the US dollar – as the world’s reserve currency – was a currency in which China, and other emerging markets, were happy to invest, not least because its own currency, the renminbi, was not convertible

War Risk Insurance (1914), 200; Constitution, 286; Dodd-Frank Reform (2010), 40, 260; dollar and gold link, 73, 195, 200–1; dollar as world’s reserve currency, 25, 28, 34; ‘double liability’ (1865-1934), 107–8; ‘free banking’ era, 60–2, 77, 161; Glass-Steagall Act (1933), 23, 98, 260; gold reserves

Crashed: How a Decade of Financial Crises Changed the World

by Adam Tooze  · 31 Jul 2018  · 1,066pp  · 273,703 words

that anti-inflation politics were the ECB’s only ambition. It also wanted to promote Europe as a financial center and the euro as a reserve currency, and that meant actively developing European debt markets. Specifically, it meant importing to Europe the American model of a repo market for government debt. Being

had also come to deliver a less friendly message. The dollar, Kudrin declared, was in danger of forfeiting its status as the “universal or absolute reserve currency.”34 It was simply too uncertain in value. “Whether it is the U.S. dollar exchange rate or the U.S. trade balance, it definitely

causes concerns with regard to the dollar’s status as a reserve currency.” Eight years on from the humiliation of 1998, when Russia’s finance minister spoke, the markets listened. Kudrin’s words were enough to send the

drama of this innovation. Responding to the crisis in an improvised fashion, the Fed had reaffirmed the role of the dollar as the world’s reserve currency and established America’s central bank as the indispensable central node in the dollar network. Given the even vaster volume of daily transactions in global

a global chorus of criticism. Advocates of reform argued that at the root of global financial instability was the overreliance on the dollar as a reserve currency. This conferred on America an exorbitant privilege, which it exploited irresponsibly, running up deficits and borrowing abroad. In 2009 the head of China’s central

, “When we look back 10 years from now, we will see 2008 as a fundamental rupture. I am not saying the dollar will lose its reserve currency status, but it will become relative.”35 Two months later, President Sarkozy declared ahead of the G20 summit, “I am leaving tomorrow for Washington to

on the currency question.4 Over the summer, with the price of oil at all-time highs, Medvedev had been pushing for a diversification of reserve currencies and a greater use of the ruble. Days before arriving in France, Medvedev had given a speech to the Russian parliament in which he drew

1944. It was thanks to America’s overweening power at the end of World War II that the dollar had been established as the global reserve currency. Ever since, America had been free to spend at will while accumulating huge deficits. To ensure true stability, as John Maynard Keynes had argued for

Freedom of Information Act to Evaluate the Federal Reserve Banks,” American University Law Review 60 (2010), 213. 33. J. Anderlini, “China Calls for a New Reserve Currency,” Financial Times, March 23, 2009; and UN, “Report of the Commission of Experts of the President of the United Nations General Assembly on Reforms of

The Bitcoin Standard: The Decentralized Alternative to Central Banking

by Saifedean Ammous  · 23 Mar 2018  · 571pp  · 106,255 words

Keeping at It: The Quest for Sound Money and Good Government

by Paul Volcker and Christine Harper  · 30 Oct 2018  · 363pp  · 98,024 words

The Shifts and the Shocks: What We've Learned--And Have Still to Learn--From the Financial Crisis

by Martin Wolf  · 24 Nov 2015  · 524pp  · 143,993 words

The Alchemists: Three Central Bankers and a World on Fire

by Neil Irwin  · 4 Apr 2013  · 597pp  · 172,130 words

The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy

by Stephanie Kelton  · 8 Jun 2020  · 338pp  · 104,684 words

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace

by Matthew C. Klein  · 18 May 2020  · 339pp  · 95,270 words

Inflated: How Money and Debt Built the American Dream

by R. Christopher Whalen  · 7 Dec 2010  · 488pp  · 144,145 words

The Price of Time: The Real Story of Interest

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MegaThreats: Ten Dangerous Trends That Imperil Our Future, and How to Survive Them

by Nouriel Roubini  · 17 Oct 2022  · 328pp  · 96,678 words

The Future of Money: How the Digital Revolution Is Transforming Currencies and Finance

by Eswar S. Prasad  · 27 Sep 2021  · 661pp  · 185,701 words

Shocks, Crises, and False Alarms: How to Assess True Macroeconomic Risk

by Philipp Carlsson-Szlezak and Paul Swartz  · 8 Jul 2024  · 259pp  · 89,637 words

The Future of Money

by Bernard Lietaer  · 28 Apr 2013

Rethinking Money: How New Currencies Turn Scarcity Into Prosperity

by Bernard Lietaer and Jacqui Dunne  · 4 Feb 2013

Extreme Money: Masters of the Universe and the Cult of Risk

by Satyajit Das  · 14 Oct 2011  · 741pp  · 179,454 words

The Rise of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis

by Tim Lee, Jamie Lee and Kevin Coldiron  · 13 Dec 2019  · 241pp  · 81,805 words

The City

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Unfinished Business

by Tamim Bayoumi  · 405pp  · 109,114 words

Stigum's Money Market, 4E

by Marcia Stigum and Anthony Crescenzi  · 9 Feb 2007  · 1,202pp  · 424,886 words

Anatomy of the Bear: Lessons From Wall Street's Four Great Bottoms

by Russell Napier  · 18 Jan 2016  · 358pp  · 119,272 words

The Ascent of Money: A Financial History of the World

by Niall Ferguson  · 13 Nov 2007  · 471pp  · 124,585 words

Currency Wars: The Making of the Next Gobal Crisis

by James Rickards  · 10 Nov 2011  · 381pp  · 101,559 words

Birth of the Euro

by Otmar Issing  · 20 Oct 2008  · 276pp  · 82,603 words

Take the Money and Run: Sovereign Wealth Funds and the Demise of American Prosperity

by Eric C. Anderson  · 15 Jan 2009  · 264pp  · 115,489 words

The Empire Project: The Rise and Fall of the British World-System, 1830–1970

by John Darwin  · 23 Sep 2009

The Social Life of Money

by Nigel Dodd  · 14 May 2014  · 700pp  · 201,953 words

Losing Control: The Emerging Threats to Western Prosperity

by Stephen D. King  · 14 Jun 2010  · 561pp  · 87,892 words

Red Flags: Why Xi's China Is in Jeopardy

by George Magnus  · 10 Sep 2018  · 371pp  · 98,534 words

Money and Government: The Past and Future of Economics

by Robert Skidelsky  · 13 Nov 2018

The End of Growth: Adapting to Our New Economic Reality

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Paper Money Collapse: The Folly of Elastic Money and the Coming Monetary Breakdown

by Detlev S. Schlichter  · 21 Sep 2011  · 310pp  · 90,817 words

Crisis Economics: A Crash Course in the Future of Finance

by Nouriel Roubini and Stephen Mihm  · 10 May 2010  · 491pp  · 131,769 words

The Currency Cold War: Cash and Cryptography, Hash Rates and Hegemony

by David G. W. Birch  · 14 Apr 2020  · 247pp  · 60,543 words

The New Depression: The Breakdown of the Paper Money Economy

by Richard Duncan  · 2 Apr 2012  · 248pp  · 57,419 words

Wall Street: How It Works And for Whom

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Making Globalization Work

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What's Next?: Unconventional Wisdom on the Future of the World Economy

by David Hale and Lyric Hughes Hale  · 23 May 2011  · 397pp  · 112,034 words

Grave New World: The End of Globalization, the Return of History

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The Making of Global Capitalism

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The Dollar Meltdown: Surviving the Coming Currency Crisis With Gold, Oil, and Other Unconventional Investments

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Austerity: The History of a Dangerous Idea

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Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism

by Kevin Phillips  · 31 Mar 2008  · 422pp  · 113,830 words

Barometer of Fear: An Insider's Account of Rogue Trading and the Greatest Banking Scandal in History

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The Invisible Hands: Top Hedge Fund Traders on Bubbles, Crashes, and Real Money

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The Age of Cryptocurrency: How Bitcoin and Digital Money Are Challenging the Global Economic Order

by Paul Vigna and Michael J. Casey  · 27 Jan 2015  · 457pp  · 128,838 words

End the Fed

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The Rise and Fall of the Great Powers: Economic Change and Military Conflict From 1500 to 2000

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Debt: The First 5,000 Years

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Money: 5,000 Years of Debt and Power

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Cryptoeconomics: Fundamental Principles of Bitcoin

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The Lords of Easy Money: How the Federal Reserve Broke the American Economy

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The Controlled Demolition of the American Empire

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Panderer to Power

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The Age of Turbulence: Adventures in a New World (Hardback) - Common

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The Death of Money: The Coming Collapse of the International Monetary System

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When the Money Runs Out: The End of Western Affluence

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The Scandal of Money

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Easy Money: Cryptocurrency, Casino Capitalism, and the Golden Age of Fraud

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Shutdown: How COVID Shook the World's Economy

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Pivotal Decade: How the United States Traded Factories for Finance in the Seventies

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The End of Growth

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Paper Promises

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The Einstein of Money: The Life and Timeless Financial Wisdom of Benjamin Graham

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Stress Test: Reflections on Financial Crises

by Timothy F. Geithner  · 11 May 2014  · 593pp  · 189,857 words

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An Empire of Wealth: Rise of American Economy Power 1607-2000

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Layered Money: From Gold and Dollars to Bitcoin and Central Bank Digital Currencies

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by Parag Khanna  · 5 Feb 2019  · 496pp  · 131,938 words

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by Kent E. Calder  · 28 Apr 2019

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Connectography: Mapping the Future of Global Civilization

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by John A. Allison  · 20 Sep 2012  · 348pp  · 99,383 words

The Economic Weapon

by Nicholas Mulder  · 15 Mar 2021

The Post-American World: Release 2.0

by Fareed Zakaria  · 1 Jan 2008  · 344pp  · 93,858 words

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by Alexander Davidson  · 1 Apr 2008  · 368pp  · 32,950 words

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Servant Economy: Where America's Elite Is Sending the Middle Class

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Magic Internet Money: A Book About Bitcoin

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The Price of Inequality: How Today's Divided Society Endangers Our Future

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Shadows of Empire: The Anglosphere in British Politics

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The Last President of Europe: Emmanuel Macron's Race to Revive France and Save the World

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A Nation of Takers: America’s Entitlement Epidemic

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Brexit Unfolded: How No One Got What They Want (And Why They Were Never Going To)

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