The Dollar and its Discontents

Olivier Jeanne

No 9007, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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: Dollar; Foreign exchange reserves; International monetary system; Triffin dilemma (search for similar items in EconPapers)
JEL-codes: F36 F43 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-opm
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Citations: View citations in EconPapers (16)

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Working Paper: The Dollar and its Discontents (2012)
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