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Dedollarization in BRICS+11: A Dual-Model Theory of Network Externalities, Geopolitical Shocks, and Strategic Coordination

Authors: Imran Ali;

Dedollarization in BRICS+11: A Dual-Model Theory of Network Externalities, Geopolitical Shocks, and Strategic Coordination

Abstract

This study develops a dual-model theoretical framework for Dedollarization in the expanded BRICS+11 coalition. The first model formalizes currency adoption with network externalities and a geopolitical shock, showing that a sufficiently large shock can tip the system from a stable dollar equilibrium to a BRICS currency equilibrium. The second model analyzes strategic coordination among heterogeneous member states, deriving conditions for a grand coalition as a Nash equilibrium. Linking the two models through coalition size and switching costs yields four testable propositions: Dedollarization requires joint satisfaction of tipping and coordination conditions; pre-emptive infrastructure investment lowers the required shock; member heterogeneity can prevent full coordination; and a lead country with credible commitment stabilizes the grand coalition. The paper concludes by outlining policy implications and promising empirical strategies, while acknowledging that the framework's testable propositions require careful operationalization of geopolitical shocks and coalition heterogeneity.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
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