The Unloved Dollar Standard

The US dollar's role as international anchor is faltering, as emerging markets become frustrated by the Fed’s near-zero interest-rate policy and the US protests other countries' exchange-rate policies, especially China's. But such conflicts are generating ill will, while shrouding the real problem: America's huge fiscal deficit.

PALO ALTO – Since World War II’s end, the US dollar has been used to invoice most global trade, serving as the intermediary currency for clearing international payments among banks and dominating official foreign-exchange reserves. This arrangement has often been criticized, but is there any viable alternative?