The International Monetary and Financial System
49 Pages Posted: 7 May 2019
There are 3 versions of this paper
The International Monetary and Financial System
The International Monetary and Financial System
The International Monetary and Financial System
Date Written: May 2019
Abstract
International currencies fulfill different roles in the world economy with important synergies across those roles. We explore the implications of currency hegemony for the external balance sheet of the United States, the process of international adjustment, and the predictability of the US dollar exchange rate. We emphasize the importance of international monetary spillovers, of the exorbitant privilege, and analyse the emergence of a new 'Triffin dilemma'.
Keywords: Exchange Rates, External assets and liabilities, Global financial cycle, International adjustment, International Currencies, Triffin dilemma
JEL Classification: E0, F3, F4, G1
Suggested Citation: Suggested Citation