The World in 2025: Political Regulatory Forces 


    The emergence of new economic centers means that the power of the United States abroad will moderate. While the US dollar remains the dominant medium of exchange, its role as the world’s money will diminish with the declining US share of world GDP and world trade, just like sterling 100 years ago. As a result, the dollar will lose its status as an unparallel global reserve currency and become the first among equals in a market basket of currencies. Without a steady source of external demand for dollars, US foreign policy actions may bring exposure to currency shock and higher interest rates for americans:
    • Power will be more dispersed with the newer players bringing new rules of the game
    • Gaps in national power between developed and developing countries will narrow
    • The relative power of non-state (businesses, organizations etc.) actors
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