Dollar Surpassed Sterling as Leading Reserve Currency in the 1920s.
The U.S. dollar became the leading reserve currency over the British pound in the 1920s, not after World War II as previously thought. This challenges the idea that only one currency can dominate reserves at a time. The findings suggest that network effects and incumbency advantages don't always apply in the reserve currency domain. This has implications for understanding interwar monetary history and the future of the dollar and euro as reserve currencies.