American ecenomic hegemony and dollar

The USA began to undertake the responsibility of leadership of the world in 1930s. Yet, the domination of the USA (in the world political system) became reality following the World War II, in the rising era of the country. Under the American domination of the world, Bretton Woods system, tariff and commerce regulations and Organizations for Economic Co-operation and Development were established. By the establishment of IMF, American monetary policy became the worldwide monetary policy and the US dollar has become an important currency globally. The US had the initial responsibility in the management of the global monetary system. However, the Bretton Woods system was terminated in 1973 and around 1975 it was about to become apparent that the US leadership was weakening. Besides, the economic leadership of the world by the US was declining in the 1980s. There was a process of regaining power in economy during the Reagan administration. The US economy faced a crisis in 2008. World economies, European ones being in the first place began to have economic crisis from 2008 October on. In the US, as a result of the Mortgage Crisis, FED maintained monetary easing policy until mid 2008-2010 to revive the descended market. However, FED stopped monetary easing in 2014. The fact that FED stopped monetary easing led to increase in dollar value, change in the money flow, capital outflow in developing countries, increase in interest rate and repricing of money and goods in the global market. Key Words: US Economy, Brief History of Dollar and FED, Rise and Fall of American Domination, US petro-dollar, Global Economy