Understanding the Strength of the Dollar

Zhengyang Jiang, Robert Richmond and Tony Zhang

No 30558, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We link the sustained appreciation of the U.S. dollar from 2011 to 2019 to international capital flows driven by primitive economic factors. We show that increases in foreign investors’ net savings, increases in U.S. monetary policy rates relative to the rest of the world, and shifts in investor demand for U.S. financial assets contributed approximately equally to the dollar’s appreciation. We then quantify the impact of potential future demand shifts for U.S. assets on the value of the dollar.

JEL-codes: F31 G15 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mon and nep-opm
Note: AP IFM
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.nber.org/papers/w30558.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:30558

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w30558

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().