PERKS AND POWER : DOLLAR PRECIS

The global economic system that the United States has shaped and steered for more than three-quarters of a century was animated by a powerful guiding vision :

That trade and finance would be based on cooperation and consent, rather than coercion.

FOR DECADES, Washington has steered the trade system, to U.S.'s benefit all around the world.

CONSIDER the pre-eminent role of the dollar as the world's reserve currency, the one that virtually every nation uses for everyday commerce and stows for rainy days.

Because global trade and transactions are conducted in dollars, everyone needs them. That demand means the United States can pay less interest when it sells Treasury bonds, which lowers borrowing costs.

In addition, American businesses are free from many of the worries that stem from the ups-downs of foreign exchange markets or capital flight.

When unrest and uncertainty roll the global economy, the dollar is seen as a safe haven - even when the United States is responsible for the turmoil.

The World Students Society thanks Patricia Cohen.