Discussion paper

DP13714 The International Monetary and Financial System

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'.


Gourinchas, P, H Rey and M Sauzet (2019), ‘DP13714 The International Monetary and Financial System‘, CEPR Discussion Paper No. 13714. CEPR Press, Paris & London. https://cepr.org/publications/dp13714