Krugman is Right for the Wrong Reasons on Dollar Hegemony
here) that supposed threats of the US dollar losing its significance as the international vehicle currency are overblown (which I certainly agree with). He reaches his conclusion, however, from a mettalist perspective, suggesting that the dollar's role reflects self-sustaining increasing returns, that is, people use dollars because the markets are thicker (many buyers and sellers) and more liquid; i.e. it is 'confidence', not power, which rules the roost. For an analysis of the mettalist perspective, along with the alternative chartalist conception of dollar hegemony, see here.