The rise of the dollar and its position of the taking international modesty currency was sealed within the Bretton Woods agreements which were established in the wake of World War II. At the beginning of the twentieth century the British sterling was by far the most of import international currency. The German grade and the Gallic franc played merely secondary functions, while that of the US dollar was negligible. Even every bit tardily as 1940, the lb sterling maintained its place as the strongest international currency in front of the dollar, grade and franc. By 1945, nevertheless, the place of the dollar and lb as international currencies had been switched. The comparative rise of the dollar to the lb sterling reflected long-term tendencies in economic basicss: The United States overtook the United Kingdom in the size of its economic system in the twelvemonth 1872 and in export volume in the twelvemonth 1915. The United States, nevertheless, did non set up a cardinal bank until 1913, which hindered the development of the fiscal system. In post World War I period, the United States moved into a net debitor place due to heavy loaning to the European Alliess to carry on their war attempts – including the United Kingdom, which moved into a net debitor place. As the US dollar evolved into a major international currency, its use in international trade and finance widened continuously. That the lb sterling kept its dominant place as a cardinal currency in the interwar period was chiefly due to inertia in such agreements.
Today along with being the most of import modesty currency worldwide the dollar remains the dominant international money functioning as a vehicle for uncluttering international payments between Bankss, as a unit of history for international trade in goods and services, and as a modesty semen intercession currency for authoritiess. There is a “ euro criterion ” in Eastern Europe. But the euro is non yet of import for dealing outside of Europe, whereas the dollar dominates minutess non affecting the United States.
The United States remains the lone state with a virtually limitless line of recognition with the remainder of the universe to prolong its current history shortages. What makes the place of the U.S. dollar, and the adoption capacity of the American economic system, so different?
In this paper we will inquire why the US dollar holds such a particular position among currencies and by which determiners does it retain this function as the taking international currency ( Chapter II ) ? Second, in Chapter III we will research which benefits and costs the United States derive from this US dollar position. We will see that Mr. d’Estaing ‘s claim in the 1960 ‘s of ‘exorbitant privileges ‘ which the US derive from the international currency position of its dollar are non rather so good. Chapter IV offers some decision on these penetrations and an brief mentality into the hereafter.
Why The Dollar? The Role of US Dollar as an International Currency
In the literature largely long-term and structural alterations in the basicss are named to explicate the international function of currencies. Short-run and volatile factors such as the exchange rate are disregarded. On the supply side an international currency must possess stableness and the breathing economic system must be adequately big every bit good as unfastened with deep and liquid fiscal markets. On the demand side there is a distinction between the private and the populace sector and the several uses in 3rd states. In this context Paul Krugman identifies six functions of the dollar:
Medium of exchange
Unit of measurement of history
Shop of value
Table 1: Functions of money and international function of currencies
The private demand for an international currency is determined by several factors: hedge, variegation and widening of funding possibilities every bit good as taking advantage of arbitrage chances ( banking ) ; dealing costs on currency markets ( vehicle ) ; the grade of homogeneousness in internationally tradable goods, the size of the trading spouse, the comparative market power of exporting houses and the snap of the demand for its goods ( invoicing ) ; internal and external stableness every bit good as the rising prices volatility. The demand of the populace sector is determined chiefly by the exchange rate government. In the instance of a fixed exchange rate government there is a necessity to find an anchor currency. Harmonizing to the theory of optimum currency countries this should be a stable currency of the economic system which is most incorporate with the several state in trade and finance. This manner the hazard of asymmetric dazes and concern rhythms can be kept to a lower limit. The pick of the ground tackle currency so determines the pick of the modesty currency, since the primary end of geting currency militias is to stabilise the exchange rate around a fixed rate.
Deep rooted alterations are required so that the supply of another currency is demanded and used for its international maps. On the supply side alterations in the comparative internal stableness and the comparative fiscal market liquidness and deepness might trip such a alteration. For the private demand side alterations in the ground tackle currency ‘s trade and funding constructions could convey about a displacement. The public sector will reconsider its demand for the ground tackle currency when the ground tackle currency ‘s economic system psychiatrists in importance and the hazard of asymmetric dazes and concern rhythms addition. Options are the pick of an alternate ground tackle currency or the passage to a flexible exchange rate government. There are several determiners of an international currency established by the literature, which we will discourse in item in the followers.
Grand domestic merchandise and trade volume
The currency of an economic system that has a big comparative size in international end product, trade and finance has a large natural advantage. The US economic system is still the universe ‘s largest in footings of end product and trade, in front of China, Japan and Germany. Germany, nevertheless, is now portion of the European Monetary Union. Its entire end product challengers that of the US. There is no indicant that any of the larger economic systems in the European Union who are non portion of the Monetary Union such as the United Kingdom and the Norse provinces will fall in in the close hereafter. Thus the inquiry of comparative size besides depends on the growing rates of the US and European economic systems. Equally of import to the comparative gross domestic merchandise is the state ‘s trading volume as another indicant of their comparative importance in the context of the universe economic system.
Liquid and deepness of fiscal markets
Crucial for achieving the position of an international currency, is the openness, efficiency and liberalisation of capital and money markets in the issuing state every bit good as the deepness, development and size of its fiscal system. The big and developed fiscal markets in the United States every bit good as in England have given the dollar and lb a blunt advantage over the euro and its predecessor the German grade, since the fiscal market topographic point in Frankfurt remains a great trade behind those in New York and London in deepness and liquidness.
Balance of Payments
In connexion with the deepness and liquidness of fiscal markets, the facet the balance payment of an economic system is relevant. The United States has taken a place in which its cyberspace liabilities to rest of the universe are and remain high. This proviso of liquidness requires a balance of a uninterrupted payment shortage. In the instance of the euro zone there is a net excess place, which does non needfully vouch the necessary liquidness for an international currency. Due to this net excess place the euro zone will non equal the dollar in footings of liquidness unless this place is overturned. The current history shortage of the United States is and remains the chief beginning of international liquidness.
Invoicing and trade payments
The most of import function of money is the unit of history. It provides a point of mention for economic activity. Once established, the united of history becomes hard to change. For illustration, with the debut of the euro as a currency, the unit of history was still the old currency for most old states even until this twenty-four hours. The illustration of the lb shows that its diminution as an international currency was eminent in the 1930 ‘s but it still served as a unit of history until the 1960 ‘s. This shows that the dollar is by far the most of import invoicing currency to day of the month and is non near to being challenged by the euro in the foreseeable hereafter.
Minutess costs of merchandising lead agents to do and have payments in a currency which has a high trade volume and is widely acceptable to all states. It is cheaper for payments between agents in little states with thinly traded currencies to be made indirectly utilizing US dollars than to utilize direct bilateral trade in their ain currency markets. While there are clear public assistance benefits to a vehicle currency in avoiding minutess costs of multiple currency trade, it introduces an dissymmetry into the international pecuniary system by giving a cardinal function to one currency.
Evaluation of natural stuffs
A major ground for the US dollar ‘s domination as an international currency is the fact that the huge bulk of resorts and natural stuffs are denominated in US dollars.
Assurance in the value and stableness
A necessary demand for an international currency is the comparative stableness of its value, as it is besides used as a signifier in which to keep assets ( houses hold working balances of the currencies in which they invoice, investors hold bonds issued internationally and cardinal Bankss hold currency militias ) . Therein there must be trust that the value of the currency will non fluctuate overly and demo considerable stableness. In peculiar it is important that there is sufficient assurance that its value will non be inflated off in the hereafter. The cardinal Bankss in Japan, Germany and Switzerland in the 1970s established a better repute of keeping low rising prices the United States. This repute was the chief ground for their consideration of going international currencies. The lowering of the rising prices rate in the 1990s helped blow away the concerns about the stableness of the dollar value. A more of import job for the dollar is the extortionately turning US debt. The go oning US current history shortage is will go on to be a downward force per unit area on the dollar. This could harm the long-term attraction of the US dollar as an international currency.
An international currency derives its value because others are utilizing it, which is a typical instance of web outwardnesss. In this sense, the intrinsic features of a currency are of less importance than the path-dependent historical equilibrium. There is a strong inactiveness to utilizing the bing prima international currency. Chinn and Frankel make an analogy with linguistic communication. “ If one sat down to plan an ideal linguistic communication, it would non be English. Cipher would claim that the English linguistic communication is peculiarly well-suited to be the universe ‘s lingua franca by virtuousness of its intrinsic beauty, simpleness or public-service corporation. It is neither as elegant and euphonous as Gallic, for illustration, nor as simple and logical in spelling and grammar as Spanish or Italian. Yet it is surely the linguistic communication in which citizens of different states most frequently converse and do concern, and progressively so. One chooses to utilize a tongue franca, as one chooses a currency, in the belief that it is the 1 that others are most likely to utilize. ”
On the private degree histrions are inclined to utilize a certain currency in minutess if everyone else is making so. If currency that is internationally used to invoice trade, there is an involvement to use it to invoice fiscal minutess besides and so it is more likely to be a vehicle currency in foreign exchange trading. Having earned the position of a vehicle currency, it is more likely to be used as a currency to which smaller states peg.
Therefore international currency usage is non additive in the determiners. Rather, there may be a tipping phenomenon. Krugman illustrated this phenomenon in the simple graph shown on the right. The coveted usage of the dollar is an increasing map that goes through points X, Y and Z. The place of this map depends on basicss such as comparative size of the economic system, the openness and efficiency of the capital markets ( every bit good as other possible factors ) . Given these factors there are several possible exilibria ( X, Y, Z ) . Say Z is the current province of the United States. A alteration in the basicss would take to a displacement in the demand map to the dotted map. There would be an accommodation towards Z ‘ . Now, nevertheless, a farther displacement in the basicss could take to a dramatic diminution in the coveted dollar usage ( towards X ‘ ) .
The deduction is that little alterations in the determiners will non needfully bring forth matching alterations in the modesty currency Numberss, at least non in the short tally. At a lower limit, alterations will demo up merely with a long slowdown. As celebrated, the lb sterling remained an of import international currency even after the United Kingdom lost its place as the largest economic system in the first half of the century. In the present context, the inertial prejudice favors the continued cardinal function of the dollar. The tipping point is non near to being reached even if the euro matches the US dollar in most of the defined determiners. The US dollar greatly overtook the lb sterling in about all determiners before the eventually its function as an international currency was manifested and the inertial effects were overcome. The euro zone will non turn this dominant in footings of GDP, trading volume and fiscal market liquidness and homogeneousness relative to the United States in the close hereafter. Therefore, from the point of position of international currency determiners it is safe to state that the US dollar will go on to sit tight in its place as the taking international currency.
Benefits and Costss of the International Role of the Dollar to United States
In this chapter, the most of import findings related to the position of the US dollar as an international currency are presented. The empirical survey presented discoveries that the United States derives a comparatively modest net fiscal benefit from being the universe ‘s primary modesty and international currency.
Deducing a theoretical theoretical account
In the followers we will remember the determiners of an international currency. From these relationships we derive a simple graphical theoretical account which highlights some of the benefits for an economic system with a currency with modesty currency position. Our theoretical account exhibits the relationship between the foreign exchange market every bit good the capital market. The supply of US dollars on the foreign exchange market has a positive upward slop – with an increasing exchange rate ( dollars become more expensive relation to other currencies ) more dollars will be supplied to the market. The US dollar supply curve can be shifted by a alteration in liquidness – f.i. increasing the sum of US Treasuries ( or other dollar assets ) by the Federal Reserve. For the intent of this theoretical account, liquidness remains the lone variable of the US dollar supply curve. The US dollar plus demand curve has a negative downward incline: When the exchange rate rises, the demand for US dollar assets declines. We now introduce the built-in portion of this theoretical account. Liquidity and web effects increase the international demand of US dollars by private and public histrions, due to its international currency position. The variable originating a displacement in the US dollar demand curve is hence liquidness, which would non be the instance for currency without international currency position. If the variable liquidness is altered, the US supply every bit good as the US demand curve are shifted. The graph below exhibits the displacement of both curves when liquidness is increased. The equilibrium displacements from point A to point B. In point B more US dollars are brought out. The distinctive feature about this accommodation is that it does non originate a important diminution in the exchange rate.
The addition in US dollar circulation must be compensated for by capital imports if we assume that the US dollars were acquired from international histrions. The increased supply of capital in the United States will hence take to a diminution in overall involvement rates as can be seen in the accommodation from I to i ‘ . The United States hence enjoys higher seigniorage income by supplying more Treasury Bonds every bit good as lower domestic involvement rates due to the addition in capital imports to pay for them.
Relationship between ( foreign exchange ) money markets and capital markets with an addition in liquidness.
We will now sum up the findings of an empirical McKinsey survey, which estimates the assorted benefits and costs for the United States that arise from the US dollar holding an international currency position. The McKinsey survey differentiates between old ages of normal economic activity and old ages of economic crisis.
For a normal twelvemonth the McKinsey survey estimates the net benefit to United States from US dollar ‘s modesty currency position to be about $ 40 billion to $ 70 billion or 0.3 to 0.5 per centum of US expansive domestic merchandise. As we have seen in the graphical theoretical account, the first type of benefit is from seigniorage income. The US Federal Reserve ‘s gross from the US dollar ‘s position of an international currency is an estimated $ 10 billion. This seigniorage income is the consequence of the United States having a de facto loan on the currency it issues and are held by aliens without paying any involvement. These foreign retentions exist because the US dollar is a medium of exchange abroad. The McKinsey survey concludes that an estimated $ 400 billion ( about half of the physical US money ) are held by foreign histrions.
Lower involvement rates
The 2nd type of benefit is the cost of capital advantage for histrions within the United States due to the increased foreign demand for dollar assets. The McKinsey survey isolates the part of this consequence that is due to the modesty currency position of the United States by ciphering the effects on capital costs to foreign authorities purchases of US authorities securities. The US cost of capital for United States as estimated by the McKinsey survey is lowered by 50 to 60 footing points as a consequence of these purchases. Using this estimated cost of capital advantage to adoption by all degrees of US authorities, families, and companies it leads to annual nest eggs of $ 130 billion. However, with lower involvement rates there is a lessening in the sum of involvement income earned on sedimentations by families and companies. This amounts to a negative income consequence that is an estimated $ 40 billion. This leads to an overall net consequence of $ 90 billion in benefits from lower cost of capital consequence of modesty currency position.
In add-on to these two benefits, there are besides costs associated with the influxs of foreign capital that are associated with being a modesty currency. As seen in the theoretical treatment the exchange rate of the US dollar is higher than it would be without the modesty currency position due to the increased international demand for US dollar plus, the costs and benefits of which will be discussed in item in the followers.
Costss and benefits of overestimate of the dollar
It is widely believed that the dollar is overvalued. It is hard to be precise about what proportion of this overestimate is due to the modesty currency position of the dollar. Harmonizing to the statistical estimations in an EPI Briefing Paper by Robert Blecker, the rise in the dollar exchange rate up to 2002 caused the undermentioned negative effects on the US economic system:
A loss of three-fourthss of a million U.S. fabrication occupations ;
A diminution in net incomes on U.S. fabrication operations of about $ 100 billion per twelvemonth ;
A decrease in capital outgos at U.S. fabrication workss of over $ 40 billion at an one-year rate.
Furthermore, he identifies the strong dollar exchange rate as one of the causes of the big US trade shortage, along with down economic conditions in foreign markets and a long-run displacement of fabricating production to other states.
The McKinsey survey estimations that on the footing of an mean dollar overestimate of 5 to 10 per centum the overall income consequence on trade exposed sectors would be $ 30 billion to $ 60 billion in 2007/8 – a sensitiveness of about $ 30 billion for every 5 per centum overestimate. There are several effects that affect US fight. First, the McKinsey survey estimations that US exports bead by $ 45 billion to $ 85 billion since they become less competitory abroad which supports Robert Blecker ‘s findings. Additionally and besides in line with Blecker, an addition in the exchange rate will give an advantage for imported goods and services over to those produced within the United States. The undermentioned addition in the US demand for imports leads about a negative income consequence of about $ 10 billion to $ 20 billion. Another consequence as mentioned above is that the higher exchange rate benefits consumers due to the lower monetary values for imports for foreign goods and services. The estimated consumer benefit sums to $ 25 billion to $ 45 billion yearly. This amounts to an overall annual net fiscal cost of $ 30 billion to $ 60 billion due to an augmented exchange rate. It should be noted that these estimations are based on the premise that the resorts are employed expeditiously in the economic system. If this is non the instance, the net fiscal cost might be lower. The United States besides enjoys important privileges related to the geopolitical and strategic benefits from being the centre of the planetary economic and fiscal system and the policy liberty that position confers. In peculiar, the American federal authorities enjoys the privilege of being able to bear larger financial shortages and the Federal Reserve could carry on a looser pecuniary policy because of the diminished market subjects incurred on the United States as an issuer of the international modesty currency.
This is a clear advantage of the modesty currency issuer. But the big accretion in recent old ages of foreign-held US debt has created a potentially important duty that could progressively restrict US policy liberty. An statement could be made that the modesty currency position is progressively making larger costs to the US economic system by coercing the United States to run important current history shortages and accumulate debt. This is correspondent in some ways to Triffin ‘s Dilemma, foremost identified in the sixtiess. Triffin ‘s Dilemma is the thought that because the modesty currency issuer must supply liquidness to the planetary system by publishing debt denominated in its currency, at some point the force per unit area to supply extra debt will jeopardize the sustainability of the modesty currency issuer. This could perchance put the system under great strain and do it to fall apart.
Reserve currency position brings about some terrible distributional effects. Internationally, the US benefits at the disbursal of the states keeping and geting US dollar assets. The fiscal advantages from US dollar modesty currency position sum to an overall one-year net benefit of $ 40 billion to $ 70 billion. This constitutes a fiscal transportation from the remainder of the universe to the United States in exchange for the American proviso of a liquid modesty currency. For case, states that have big US dollar militias, in peculiar China, Japan, Taiwan and South Korea, earn a lower rate of return on US dollar assets and other investings. The modesty currency position besides has singular distributional effects within the American economic system. The American economic system taken as a whole benefits from the modesty currency position of the US dollar. The costs and benefits, nevertheless, are non distributed uniformly across all affected sectors. As has been mentioned above particularly exporters in the context to Blecker ‘s findings, industries that compete with imported goods and services, and rescuers carry the majority of the cost while consumers and borrowers mostly reap the fruits. In fact, the federal and province authoritiess are the biggest individual donee of the modesty currency position in the United States, profiting from seigniorage gross every bit good as lower adoption costs on public debt. There is a redistribution of resources and public assistance from US companies that are exporters and those that compete with importers, to private and public sector borrowers. In this sense, the modesty currency position of the United States has reinforced the instabilities that have developed in its economic system. Furthermore, it becomes evident that there are besides transportations among families. Those families with a higher debt than involvement gaining assets will obtain greater benefit from the modesty currency position of the United States. On the other manus those who have more assets gaining involvement than debt will confront a cost. With respect to age younger coevalss benefit stronger while older coevalss tend to incur a cost. Interestingly the benefits shift disproportionately to those families with above norm and high incomes due to the higher inclination to take on significant bank loans.
Cost and benefit in crisis old ages
What has been stated therefore far about costs and benefits relates to normal economic conditions. We will now see how the distribution of costs and benefits alterations in an economic downswing. The net benefit as a consequence of modesty currency position is $ 40 billion to $ 70 billion in a normal twelvemonth ( 0.3 to 0.5 per centum of GDP ) .These figures cut down in a bad economic conditions to the scope of a net cost of $ 5 billion to a net benefit of $ 25 billion ( 0 to 0.2 per centum of GDP ) yearly. This diminution in the size of the net benefit occurs due to significant influxs of foreign capital into the American economic system during a crisis twelvemonth. There is a subsequent rise in foreign purchases of US Treasuries which significantly increases the capital cost advantage in early 2009. However, this larger benefit was outdone by a crisp grasp of the dollar, which had negative effects on the fight for the exporting industry every bit good as companies in competition with imported goods and services. As can be seen in the US Dollar Index for the past decennary on the left, the dollar appreciated well during the fiscal crisis, which had a extremely negative consequence on company ‘s competitory place. The incurred cost for trade increased from $ 30 billion to $ 60 billion in a normal twelvemonth to between $ 85 billion and $ 115 billion during the fiscal crisis in 2009 ( a negative impact on GDP of 0.5 % ) . This exhibits some of the jobs that a modesty currency issuer faces in planetary economic downswings. The overall benefit of modesty currency position diminishes to negligible degrees. The crisis conditions even reinforced the distributional effects of that position in a manner that increase the defined built-in instabilities in the American economic system.
Decisions and Deductions for the Future
This paper has explored some of the determiners for international currencies offered in the literature, the most of import of which are comparative economic size of the issuing state, liquidness and deepness of its fiscal markets, assurance in the stableness, web effects every bit good as inactiveness in the established planetary system. The paper so illustrates theoretically and through empirical observation how the United States benefits from the position of its currency. The net fiscal benefit is shown by the McKinsey survey to be comparatively low in normal economic conditions and even negligible in crisis old ages. Looking at the hereafter, the negative consequence of the augmented exchange rate associated with modesty currency position may turn in size and importance in the close hereafter. There is turning belief that there should be a greater accent on export-driven economic growing given the high degree of unemployment, the current instabilities in between sectors and the projection that private ingestion remains weak these force per unit areas for export-driven economic growing will be relentless. Ken Rogoff commented on the US authorities ‘s paces to take down unemployment by stating: “ I do n’t believe anything they can come up with is every bit powerful as the dollar worsening ( aˆ¦ ) It ‘s a good short-run encouragement. Every state ‘s fabrication sector loves it when the currency has a moderate depreciation. ” In this context there are a few obstructions sabotaging US dollar depreciation. Naturally, dollar depreciation does non convey approximately increased fight against economic systems which fix or manage their exchange rates against the dollar and so counterbalance any dollar motion. In the recent yesteryear, Asiatic cardinal Bankss have been plied to step in in currency markets to countervail the competitory disadvantage for their big export industries and affiliated frights of deflation caused by an grasp of their ain currency. An indicant of this is that planetary functionary militias have doubled over the past five old ages from $ 3.4 trillion to $ 6.8 trillion. The sum of currency militias that are being held by states like China, Taiwan, Japan and South Korea clearly exceed what would be efficient by any theoretical criterion. The path-dependency of these states nail downing to the US dollar incurrs great costs to them. Give the recent developments and the decreasing benefits of the modesty currency position of the US dollar, it is non clear that even the United States has a vested involvement to retain its currency position. Yes, the United States will go on to hold an involvement to hold continued entree to cheaper capital and the freedom to carry on continued loose pecuniary and financial policy. However, it is in the kingdom of possibility that the benefits of modesty currency position may be readily outdone by turning costs and farther restrictions such as the loss of liberty on economic, particularly pecuniary policy. A scenario which Triffin predicted may go world. If the United States so pursues a policy of export-driven economic growing, it would shut the bing trade shortage. The US dollar in its function as the taking international modesty currency harmonizing to Triffin, nevertheless, would ask spread outing trade shortages to fulfill the increasing US dollar demand. The manner the planetary system is presently built around the US dollar, there seems no immediate cause for concern about its stableness in the following decennary ( and beyond ) and largely likely the position quo will predominate. However, treatments about set uping an alternate individual international currency based on currency baskets such as suggested by China and Russia are going more platitude and will increase if costs continue to turn for all parties involved. The euro as an option does non look plausible because it would confront the same restrictions as the US dollar does now playing the double function of a national and an international currency though it does play an increasing function in the euro-zone fringe. The ‘exorbitant privileges ‘ which Mr. Estaing to the United States by virtuousness of being the issuer of the taking international currency to the least do non look all that exorbitant any longer. The position quo with all likeliness will be retained unless the United States and other major histrions incur ‘exorbitant costs ‘ from the current order of things.
Blecker, Robert A. “ Testimony on the impact of overvalued dollar on the American economic system ” . Economic Policy Institute September 3. 2003. & lt ; hypertext transfer protocol: //www.epi.org/publications/entry/webfeatures_viewpoints_dollar_value_testimony/ & gt ; .
Chinn, Menzie & A ; Frankel, Jeffrey ( 2005 ) . “ Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency? ” NBER Working Papers 11510, National Bureau of Economic Research, Inc.
Chinn, Menzie & A ; Frankel, Jeffrey ( 2008 ) . “ Why the Euro Will Rival the Dollar, ” Panoeconomicus, Faculty of economic sciences, Department of Economics, vol. 55 ( 3 ) , pages 255-278, September.
Devereux, M. B. and Shi, S. ( 2005 ) . “ Vehicle Currency* ” . Roneo. & lt ; hypertext transfer protocol: //faculty.arts.ubc.ca/mdevereux/vc09.pdf & gt ; .
Dobbs, Richard et Al. ( 2009 ) . “ An extortionate priviledge? Deductions of modesty currencies for competitiveness – Discussion paper ” . McKinsey Global Institute.
Dooley, Michael & A ; David Folkerts-Landau & A ; Peter Garber ( 2003 ) , “ An Essay on the
Revived Bretton Woods System ” , Deutsche Bank, Global Markets Research.
Eichengreen, Barry and Flandreau, Marc ( 2008 ) “ The Rise and Fall of the Dollar, or When Did the Dollar Replace Sterling as the Leading International Currency? ” NBER WP 14154, July.
Frankel, Jeffrey A, ( 1995 ) . “ Still the Lingua Franca: The Exaggerated Death of the Dollar. ” Foreign Affairs 74,4 ( July/August ) .
Gilman, Martin G. “ Russia: The Latecomer to the G8 ” . Russia in Global Affairs July – September. 2007:2. & lt ; hypertext transfer protocol: //eng.globalaffairs.ru/number/n_9128 & gt ; .
Krugman, Paul ( 1984 ) . “ The International Role of the Dollar: Theory and Prospect, ” NBER Chapters, in: Exchange Rate Theory and Practice, pages 261-278 National Bureau of Economic Research, Inc.
Marsh, Bill. “ Winners and Losers as the Dollar Falls. ” The New York Times December 6. 2009. & lt ; hypertext transfer protocol: //www.nytimes.com/interactive/2009/12/06/business/metrics.html & gt ; .
McKinnon, Ronald ( 2009 ) . “ U.S. Current Account Deficits and the Dollar Standard ‘s Sustainability: A Monetary Approach ” . en Helleiner, R. Kirshner, J. ( explosive detection systems. ) , The Future of the Dollar. Cornell University Press.
Ponsot, J.F. ( 2006 ) . “ Dollarization and the Hegemonic Status of the US Dollar ” . In S.
Rossi and L.P. Rochon ( explosive detection systems ) , Monetary and Exchange Rate Systems: A Global View on Financial Crises, Cheltenham, Edward Elgar, pp.22-37.
Remsperger, Herrmann & A ; Winkler, Adalbert ( 2009 ) . “ Welchen Einfluss hat der Wechselkurs auf dice internationale Rolle von US-Dollar und Euro? ” In Perspektiven der Wirtschaftspolitik, Zeitschrift des Vereins fur Socialpolitik, Band 10, Heft 1, S. 21-38.
“ U.S. dollar ‘seriously overvalued ‘ — survey ” . Reuters June 3. 2009. & lt ;
hypertext transfer protocol: //www.reuters.com/article/idUSN0319516120090603 & gt ; .
VI. Declaration of Independant Work – Eigenstandigkeitserklarung
Ich versichere hiermit, hyrax ich die vorliegende Seminararbeit Massachusetts Institute of Technology dem Thema:
“ Deductions of the Dollar as the World Reserve Currency ”
selbststandig verfasst und keine anderen ALSs die angegebenen Hilfsmittel benutzt habe. Die Stellen, die anderen Werken dem Wortlaut Oder dem Sinn nach entnommen wurden, habe ich in jedem einzelnen Fall durch dice Angabe der Quelle, auch der benutzten Sekundarliteratur, ALSs Entlehnung kenntlich gemacht.
— — — — — — — — — — — — — — — — — — — — — — — – — — — — — — — — — — — — — — — — — — — — — –