The US Dollar as an International Currency Reserve and Its Value

John N. Kallianiotis

Chapter Chapter 6 in International Financial Transactions and Exchange Rates, 2013, pp 215-244 from Palgrave Macmillan

Abstract: Abstract The current account deficit (e.g., consumption exceeds production in the United States because US MNCs have transferred their production abroad)causes a capital account surplus (e.g., capital inflows in the United States) and at the same time, the scale of financing needed to support the US fiscal deficit and the private sector’s and households’ debts, along with the Federal Reserve’s policy of keeping US interest rates low to ward off deflation, stimulate the financial markets, and revive growth, which is difficult without fiscal policy, has revived concerns about a sudden and sharp depreciation of the US dollar.

Keywords: Exchange Rate; Interest Rate; Current Account; Moving Average; Consumer Price Index (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-35693-2_6

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DOI: 10.1057/9781137356932_6

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