The dollar and its discontents

Olivier Jeanne

Journal of International Money and Finance, 2012, vol. 31, issue 8, 1976-1989

Abstract: Has the US dollar delivered the benefits that the rest of the world is expecting from its holdings of international liquidity? US government debt has been liquid and safe, and it is supplied in sufficient quantity. But it has given a low return to the countries that accumulated the most reserves, especially when those returns are measured in terms of the countries' own consumption. I argue in this paper that the countries that accumulate the most reserves should expect a low return in terms of their own consumption, and that there is little that international monetary reform can do to change that fact.

Keywords: International monetary system; Dollar; Foreign exchange reserves; Triffin dilemma (search for similar items in EconPapers)
JEL-codes: F36 F43 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (16)

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Working Paper: The Dollar and Its Discontents (2012)
Working Paper: The Dollar and its Discontents (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:31:y:2012:i:8:p:1976-1989

DOI: 10.1016/j.jimonfin.2012.05.012

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