ANALYSIS OF THE CHANGING ROLE OF POUND STERLING WITHIN THE INTERNATIONAL MONETARY SYSTEM

  • Garri Teslya Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation, Rostov-on-Don
  • Tatiana Podolskaya Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation, Rostov-on-Don
DOI: https://doi.org/10.35678/2539-5645.4(23).2020.39-44
Keywords: pound sterling; US dollar; currency; international monetary system

Abstract

The paper investigates how the role of the British currency has been changing within the international monetary system. This article is focused on sorting out why the world financial dominance of the United Kingdom was undermined and when exactly the dollar took over as the leading international currency. This question arises, because some authors, using evidence from the bond markets, state that the US dollar overtook sterling much earlier than in 1945, namely in 1929, while others adhere to another common opinion. Our study uses the quantitative research approach to examine the hypothesis questions. The null hypothesis states that the sterling lost its financial dominance before the World War II, while our alternative hypothesis claims that the dominance was lost after the same war.

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Author Biographies

Garri Teslya, Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation, Rostov-on-Don

MBA, Russia Presidential Academy of National Economy and Public Administration, Rostov-on-Don, Russia

Research interests: financial mathematic, financial markets, currency parity

Tatiana Podolskaya, Russian Presidential Academy of National Economy and Public Administration under the President of the Russian Federation, Rostov-on-Don

is a candidate of economical sciences (since 2003); PhD – candidate  in Russia Presidential Academy of National Economy and Public Administration, Rostov-on-Don, Russia (since 2008) and  associate professor of department of international economy.

Her scientific interests are concentrated around international financial system, government and international regulation of global finance market.

Since 2005 she published more than 20 articles in Russian federal and international journals; participated more than 30 International scientific – practical conferences.

References

Chitu, L., Eichengreen, B. & Mehl, A. (2012). When Did The Dollar Overtake Sterling As The Leading International Currency? Working Paper Series, 1433. 1-43.

Global Financial Data (2014). History of Universal Currencies. Available at: http://www.globalfinancialdata.com/a-history-of-universal-currencies/

Investopedia (2020). How the U.S. Dollar Became the World's Reserve Currency. Available at: https://www.investopedia.com/articles/forex-currencies/092316/how-us-dollar-became-worlds-reserve-currency.asp

Schenk, C. R. (2015). The Retirement of Sterling as a Reserve Currency after 1945: Lessons for the US Dollar. Available at: https://www.researchgate.net/publication/229048743_The_Retirement_of_Sterling_as_a_Reserve_Currency_after_1945_Lessons_for_the_US_Dollar

Södersten, B. & Reed, G. (2015). The International Monetary System. Available at: https://link.springer.com/chapter/10.1007%2F978-1-349-23320-5_31

Wilson, J. (2014). Essentials of Business Research: a guide to doing your research project. 2nd edition. London: SAGE.

World Economic Forum (2016). A short history of the British pound. Available at: https://www.weforum.org/agenda/2016/06/a-short-history-of-the-british-pound/


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Published
2020-07-31
How to Cite
Teslya, G., & Podolskaya, T. (2020). ANALYSIS OF THE CHANGING ROLE OF POUND STERLING WITHIN THE INTERNATIONAL MONETARY SYSTEM. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (4(23), 39-44. https://doi.org/10.35678/2539-5645.4(23).2020.39-44
Issue
No 4(23) (2020): The EUrASEANs: journal on global socio-economic dynamics
Section
Articles

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