The Morphology of US five crisis after 1970

Abstract

Since the breakdown of the Bretton Woods agreements signed at the beginning of the 1970´s, the U.S. economy recorded five crisis embedded and in turn derived from its macroeconomic logic which consists of two concurrent deficits, in the fiscal accounts and in the foreign trade. The marginalization of part of the postwar economic arrangements broke monetary corset imposed by the dollar's convertibility to gold, empowering its funding from increased monetization and securitization financing. Most economies operated by facilitating the monetary absorption creating greater reserves despite the constant process of devaluation of U.S. monetary assets. The present crisis opens the question about their ability to continue implementing their old macroeconomic logic, holding the dollar as primary reserve of value in much of the world.