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'.