The Eurodollar System vol 1: The Global Power of the Dollar

In this comprehensive exploration of the Eurodollar system and the role of International Financial Centers (IFCs), Diego Quevedo, a scholar of the monetary system, delves into the complexities of global financial liquidity, transnational capital flows, and their profound impact on the world economy. From the history of the Eurodollar market to its evolution in the 21st century, this book examines the critical function of IFCs—such as the Cayman Islands, Luxembourg, Singapore, and Hong Kong—in facilitating credit creation, optimizing tax strategies, and financing U.S. debt. With a focus on the interaction between global economic policy, fiscal stability, and financial risk, The Eurodollar System provides a nuanced analysis of the mechanisms driving international trade, investment, and the dollar’s dominance. Through clear explanations and illustrative diagrams, Quevedo highlights key concepts such as the role of SOFR, the definition of exchange rates as liquidity costs, and the dynamics of the U.S. trade deficit in relation to dollar flows. Readers will gain a deep understanding of how IFCs support the dollar and its liquidity, as well as the controversies surrounding their tax advantages and regulatory frameworks. This book is an essential read for economists, financial professionals, and anyone interested in understanding the foundations of the global financial system and the mechanisms driving international capital flows and liquidity. Due to Amazon’s physical restrictions, the book is divided into two volumes.