IS THE USA POLITICAL AND ECONOMIC STRENGTH ARISING FROM DOLLARS SUSTAINABLE?

Abstract

Throughout history, those who set the rules of the international financial system have also been the owners of economic and political power. However, there are constant changes between financial stability and instability in the world. The periods of financial stability achieved with the gold standard were replaced by instability once again with the I. and II. world wars. These instabilities continued until the Bretton Woods agreement signed in 1944. The stability achieved by the Bretton Woods system was replaced by instability once the system collapsed. As a result, a series of uncertainties arose that fueled the economic and financial problems of the world with the collapse of the system. Since the beginning of the 20th century, the USA has emerged as a dominant economic and political player in the world economy. The United States of America, in particular by determining the rules of the international monetary system with the Bretton Woods Agreement after World War II; has become a dominant force in production, security and financial structures. Naturally, this new structure has been and continues to be shaped in the interests of the United States of America. While the United States liberalizes the world economy in areas of its own interest, it has turned to protectionism in areas where its benefits are less pronounced. These are the privileges of the hegemon. It is aimed to produce alternatives to dollars by examining the formation of dollar hegemony with the Bretton Woods Agreement and its position in the current financial system. In addition, the answer is sought to the question "How can a new generation financial system be created to eliminate the financial turmoil caused by uncertainties in the financial system?". In line with the creation of a new financial system; In this study, we will try to answer the basic questions that will shed light on the dynamics of the global financial system. First of all, how dollar hegemony is formed and what sanctions it has will be examined. Secondly, how the power is distributed and used in the international financial system is questioned. Thirdly, it will be tried to explain how the relationship between different national currencies are formed and which by factors are determined this relationship. Finally, it will be focused on how to establish a more flexible and stable system with alternative currencies for dollars.