Dollar Surpassed Sterling as Leading Reserve Currency in the 1920s
The U.S. dollar became the top reserve currency over the British pound in the 1920s, not after World War II as previously thought. This shows that the idea of one dominant reserve currency at a time isn't always true. The findings challenge the belief that the dominant currency stays that way due to network effects. This has big implications for understanding the history of money between the two World Wars and for the future of the dollar and euro as reserve currencies.