The world is on a dollar standard, and in some ways the reach of the dollar is expanding. Advertisement Continue reading the main storyIn a dollar world, most countries are happiest when the dominant currency is cheap and plentiful. From 1450 through the late 1700s, the leading reserve currency was held by smaller countries — first Portugal, followed by Spain, the Netherlands and France. It never gained the advantages of having the leading reserve currency because, then as now, its financial system lacked credibility. No one doubts that China poses a growing military and economic challenge to the United States.

Source: New York Times December 25, 2017 08:15 UTC