Dollar Surpassed Sterling as Leading International Currency in the 1920s.
The U.S. dollar became the top international currency in the 1920s, overtaking the British pound earlier than previously thought. This challenges the idea that only one currency can dominate reserves at a time. The findings suggest that network effects don't always keep a currency on top, and there can be more than one dominant reserve currency. 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.