Dollar rationing affecting the economy negatively
In a globalised world, complex economic interactions are facilitated behind the scenes through the financial markets to make available basic goods and services to consumers at affordable prices.
Such pronouncements mean little to them as only a small population ever deals in forex currencies. The consequences of this rationing have far-reaching effects at household or individual levels.
There are accidents of economic history that have enabled the US to attain the prestigious status of monetary autonomy.
After the Second World War, former European powers lacked adequate capital with ravaged economies to steer the new post-war world economic order.
The Bretton Woods Institutions - the World Bank, International Monetary Fund - and World Trade Organisation and the United Nations were established to midwife specific elements of the world economy.
The World Bank was to mobilise capital, IMF was to oversee macroeconomic order, WTO to facilitate trade relations while the UN was to deal with politics.
