The Political Economy of Reducing the US Dollar’s Role as a Global Reserve Currency
AbstractMany have argued that the major source of the existing global macroeconomic imbalances are the twin deficits of the United States (US). However, there is still a debate about whether the global imbalances indeed pose a significant threat to the world economy. This paper analyzes whether current efforts in East Asia in terms of financial and monetary cooperation and rebalancing of economic growth could significantly mitigate the adverse impacts of a global system that will still be dominated by the US dollar in the foreseeable future. It also explains why the People’s Republic of China is unlikely to make significant unilateral adjustments to reduce global macroeconomic imbalances.
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Bibliographic InfoPaper provided by Asian Development Bank Institute in its series ADBI Working Papers with number 302.
Length: 29 pages
Date of creation: 04 Aug 2011
Date of revision:
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More information through EDIRC
east asia; global macroeconomic imbalances; rebalancing economic growth; financial and monetary cooperation;
Find related papers by JEL classification:
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-CBA-2011-08-15 (Central Banking)
- NEP-MON-2011-08-15 (Monetary Economics)
- NEP-SEA-2011-08-15 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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