The dollar went up some eighty percent in real terms as I recall now or something like that – from ’80 to ’85. Robert C. Solomon Read Quote
There’s a stability and growth pact which was agreed for the eleven countries which tries to limit the size of budget deficits among the eleven countries. Robert C. Solomon Read Quote
The major material advantage, financial advantage from having a reserve currency is that between 200 and 300 billion dollar bills, that may be twenty, fifty, hundred dollar bills as well as ones, exist in the world – a lot of them in Russia as you all know I’m sure. Robert C. Solomon Read Quote
On private transactions, I’ll just go very quickly now, a major difference between the United States and Euroland is that in Europe banks are much more important in financial transactions than in the United States. Robert C. Solomon Read Quote
To the extent that the United States has, I don’t like the word hegemony, the United States has influence around the world, I don’t think that’s based on to any significant degree on the fact that countries use the dollar as their major reserve. Robert C. Solomon Read Quote
There has been talk in Europe about American hegemony being somehow based upon the use of the dollar in the world. I just don’t see that connection at all. Robert C. Solomon Read Quote
So if the euro, if Euroland is to become a reserve center, if the euro is to become a reserve currency, Euroland will have to have a deficit in its overall balance of payments. Robert C. Solomon Read Quote
Some countries that are close to Europe that already hold Deutschemarks, clearly would automatically hold euros, those are countries in Eastern Europe mainly, a few countries in Africa. Robert C. Solomon Read Quote
If a currency is to become a growing, an increasing reserve currency, there has to be not only a demand for it there has to be a supply of it. Robert C. Solomon Read Quote
