The surge in academic work on globalization has made several of the topics dear to authors of the dependency school relevant once again. Therefore, a reconsideration of dependency theory seems to be appropriate. There are at least two approaches to dependency. This article analyzes critically their similarities, differences, and limitations, in particular regarding the role of technology and international finance in the explanation of center and periphery interactions. The evolution of the ideas on dependency in Latin America is evaluated. The reduced relevance of strict definitions of the technological division of labor, the theoretical problems caused by the effective industrialization of several countries in the periphery, the debt crisis, and the failure of the neoliberal agenda are also discussed. In the era of globalization and great transformations in the international economy, the "new" dependency seems to be financial in nature.

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in April 20111 University of Utah, Salt Lake City. Preliminary versions of this paper were presented at the Allied Social Sciences Association meetings in Denver, CO., January 6, 2011, and at the Heterodox Economics Student Association seminar series at the University of Utah, March 11, 2011. The authors would like to thank, without implicating, participants for their comments. Also, we would like to thank Linda Goldberg, of the Federal Reserve Bank of New York, for sharing her data on international trade invoicing.The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals.Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. fiscally contractionary policies to maintain the value of the currency), but rather to provide an asset free of the risk of default. It is argued that the current crisis in Europe illustrates why the euro is not a real contender for hegemony in the near future.

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in January 2012* The opinions here expressed are the authors' own and may not coincide with that of the institutions with which they are affiliated. A preliminary version of this paper was presented at Universidad Autónoma de México (UNAM) on September 9, 2011, and at the University of Texas at Austin on November 4, 2011. We thank, without implicating them, Jörg Bibow, Heiner Flassbeck, James K. Galbraith, Tom Palley, Carlo Panico, Ignacio Perrotini, and other conference participants for their comments on a preliminary version.The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals.Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad.