DP13714 The International Monetary and Financial System
Author(s): | Pierre-Olivier Gourinchas, Hélène Rey, Maxime Sauzet |
Publication Date: | May 2019 |
Date Revised: | May 2019 |
Keyword(s): | Exchange Rates, External assets and liabilities, Global financial cycle, International adjustment, International Currencies, Triffin dilemma |
JEL(s): | E0, F3, F4, G1 |
Programme Areas: | Financial Economics, International Macroeconomics and Finance, Monetary Economics and Fluctuations |
Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=13714 |
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'.