I published a further commentary at OMFIF today on the challenge to monetary sovereignty from accelerating dollarisation of both the global economy and many domestic economies. The piece starts with ex-Bank of England Governor Mark Carney's 2019 Jackson Hole speech on 'destabilising asymmetry' of dollar dominance and ends with Swedish Riksbank Governor Stefan Inqves hope that innovation can help central banks address the challenges. Pacemaker.Global was founded to do just that . The tools we are developing for central banks and supranationals will make an important contribution to better understanding and better management of systemic risks and financial stability.
25/08/21 Update: The article that was published last Wednesday was pulled several hours later (after I had emailed the link and cross-posted to LinkedIn, causing some confusion and embarrassment). It wasn't until Monday of this week that I was told why the article was taken down and what editors needed to put it back up. Three things drew fire: the observation that China could gain primacy soon in the SDR basket weightings, the suggestion that Facebook was forced to shift from the Libra basket of currencies in Switzerland to a USD stablecoin in California, and that I ended the piece with the need for collaborative tools to manage dollarisation without offering concrete solutions.
So as of yesterday afternoon the amended piece is back up, and today it is featured in the OMFIF newsletter that will hit the inboxes of 90 percent of the world's central banks. I'm grateful to the OMFIF editorial team for all their help and confidence. We changed the title to make clear that Pacemaker is not 'against' dollar dominance. We plan to make a business out providing better tools for managing it instead.
Click on the animations in the piece. They are super fun!