dollar has been not just America's currency but the world's. It is used globally by importers, exporters, investors, governments and central banks alike. Nearly three-quarters of all $100 bills circulate outside the United States. The dollar holdings of the Chinese government alone come to more than $1,000 per Chinese resident. This dependence on dollars, by banks, corporations and governments around the world, is a source of strength for the United States. It is, as a critic of U.S. policies once put it, America's "exorbitant privilege." However, recent events have raised concerns that this soon may be a privilege lost. Among these have been the effects of the financial crisis and the Great Recession: high unemployment, record federal deficits, and financial distress. In addition there is the rise of challengers like the euro and China's renminbi. Some say that the dollar may soon cease to be the world's standard currency--which would depress American living standards and weaken the country's international influence.In Exorbitant Privilege, one of our foremost economists, Barry Eichengreen, traces the rise of the dollar to international prominence over the course of the 20th century. He shows how the greenback dominated internationally in the second half of the century for the same reasons--and in the same way--that the United States dominated the global economy. But now, with the rise of China, India, Brazil and other emerging economies, America no longer towers over the global economy. It follows, Eichengreen argues, that the dollar will not be as dominant. But this does not mean that the coming changes will necessarily be sudden and dire--or that the dollar is doomed to lose its international status. Challenging the presumption that there is room for only one true global currency--either the dollar or something else--Eichengreen shows that several currencies have shared this international role over long periods. What was true in the distant past will be true, once again, in the not-too-distant future.The dollar will lose its international currency status, Eichengreen warns, only if the United States repeats the mistakes that led to the financial crisis and only if it fails to put its fiscal and financial house in order. The greenback's fate hinges, in other words, not on the actions of the Chinese government but on economic policy decisions here in the United States.Incisive, challenging and iconoclastic, Exorbitant Privilege is a fascinating analysis of the changes that lie ahead. It is a challenge, equally, to those who warn that the dollar is doomed and to those who regard its continuing dominance as inevitable.

    In this revised edition of his essential book, Starr focuses his shrewd attention on them all. He furnishes additional material on China's relations with Taiwan and Tibet, the transfer of Hong Kong to Chinese rule, China's nuclear weapons program, and its environmental and human rights records.

    The victim was Mohammad Mossadegh, the democratically elected prime minister of Iran. Although the coup seemed a success at first, today it serves as a chilling lesson about the dangers of foreign intervention.In this book, veteran New York Times correspondent Stephen Kinzer gives the first full account of this fateful operation. His account is centered around an hour-by-hour reconstruction of the events of August 1953, and concludes with an assessment of the coup's "haunting and terrible legacy."Operation Ajax, as the plot was code-named, reshaped the history of Iran, the Middle East, and the world. It restored Mohammad Reza Shah to the Peacock Throne, allowing him to impose a tyranny that ultimately sparked the Islamic Revolution of 1979. The Islamic Revolution, in turn, inspired fundamentalists throughout the Muslim world, including the Taliban and terrorists who thrived under its protection."It is not far-fetched," Kinzer asserts in this book, "to draw a line from Operation Ajax through the Shah's repressive regime and the Islamic Revolution to the fireballs that engulfed the World Trade Center in New York."Drawing on research in the United States and Iran, and using material from a long-secret CIA report, Kinzer explains the background of the coup and tells how it was carried out. It is a cloak-and-dagger story of spies, saboteurs, and secret agents. There are accounts of bribes, staged riots, suitcases full of cash, and midnight meetings between the Shah and CIA agent Kermit Roosevelt, who was smuggled in and out of the royal palace under a blanket in the back seat of a car. Roosevelt,the grandson of President Theodore Roosevelt, was a real-life James Bond in an era when CIA agents operated mainly by their wits. After his first coup attempt failed, he organized a second attempt that succeeded three days later.The colorful cast of characters includes the terrified young Shah, who fled his country at the first sign of trouble; General H. Norman Schwarzkopf, father of the Gulf War commander and the radio voice of "Gang Busters," who flew to Tehran on a secret mission that helped set the coup in motion; and the fiery Prime Minister Mossadegh, who outraged the West by nationalizing the immensely profitable Anglo-Iranian Oil Company. The British, outraged by the seizure of their oil company, persuaded President Dwight Eisenhower that Mossadegh was leading Iran toward Communism. Eisenhower and Prime Minister Winston Churchill of Great Britain became the coup's main sponsors.Brimming with insights into Middle Eastern history and American foreign policy, this book is an eye-opening look at an event whose unintended consequences - Islamic revolution and violent anti-Americanism--have shaped the modern world. As the United States assumes an ever-widening role in the Middle East, it is essential reading.