The Dollar’s Imperial Circle

Ozge Akinci, Gianluca Benigno, Serra Pelin and Jonathan Turek

No 20230301, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The importance of the U.S. dollar in the context of the international monetary system has been examined and studied extensively. In this post, we argue that the dollar is not only the dominant global currency but also a key variable affecting global economic conditions. We describe the mechanism through which the dollar acts as a procyclical force, generating what we dub the “Dollar’s Imperial Circle,” where swings in the dollar govern global macro developments.

Keywords: Global spillovers; spillovers and spillbacks; manufacturing; global trade; global supply chain (search for similar items in EconPapers)
JEL-codes: F00 (search for similar items in EconPapers)
Date: 2023-03-01
New Economics Papers: this item is included in nep-mon, nep-opm and nep-pay
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Journal Article: The Dollar’s Imperial Circle (2024)
Working Paper: The Dollar's Imperial Circle (2023)
Working Paper: The Dollar’s Imperial Circle (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fednls:95729

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