Dollar heg good—key to US diplomacy, foreign aid, education, business, etc.
Palley 22- chief economist for the United States-China Economic and Security Review Commission.
Thomas Palley, " Theorizing dollar hegemony, Part 1: the political economic foundations of exorbitant privilege," Post-Keynesian Economics Society, 08-xx-2022, https://www.postkeynesian.net/downloads/working-papers/PKWP2220_v2.pdf-- 嘉玮
US economic power also positively impacts US international political power. First, it provides the resources to support US soft power initiatives. That includes directly financing foreign aid, educational and cultural initiatives, and diplomatic service-related initiatives. It also includes financing and justifying the dominant US presence in the IMF, World Bank, IDB, and other multilateral financial institutions. Second, the opportunities within the US economy provide an incentive for foreign countries to ally and do business with the US, with countries wanting trade and investment access to the US market.
Conversely, US international political power is good for US economic power. Thus, domination of the institutions of global governance enables the US to work them to the benefit of the US economy. Schwartz (2019) argues that has been particularly so with the new rules of global trade established under the WTO regime which have expanded intellectual property right (IPR) protections to the benefit of corporate profitability, with the US benefitting the most as it is the global leader in IP production (Soskice, 2022). Similarly, soft power connections are a form of indirect investment in the US. US institutions of higher education attract foreign talent. Scientists and high-tech engineers often remain and add to US human capital. Meanwhile, economists and MBAs are inculcated with a US-friendly intellectual perspective and return home to become business and policy leaders. Business opportunities are significantly relational so that the relationships formed generate economically beneficial opportunities. Such relationships are also fostered by diplomatic service activity and by the MNC - US government - foreign government network.